It’s not just the Apples of the world that are trying to adjust as quickly as possible to the unpredictable tariff regime implemented by the Trump administration. Smaller creators, including those who crowdfund their projects, are also dealing with the burden of 145% tariffs on goods from China. To help offset those costs, Kickstarter has introduced a new Tariff Manager tool, which will help creators add charges to fully funded projects to offset the unexpected costs of completing and delivering their final product.
The Tariff Manager allows creators to apply a new tariff-related fee to backers who have pledged at certain levels. That fee will appear as a surcharge in addition to existing payments made by supporters, and will be clearly labeled as a separate line on the payment page so the backer knows that the charge is related to tariffs (and can properly point fingers at who is responsible for that). Kickstarter promises that the payments for the additional tariff surcharge will go directly to creators to cover import costs through the fulfillment process.
Now, that process works well for creators (though obviously no one wants to ask their supporters for more money if they can help it), but there is a chance that backers might have issues with getting hit with extra charges that they did not pledge or plan for. Kickstarter says that backers can choose not to pay the tariff cost, at which point the backer and creator will have to work one-on-one to figure out the best path forward, including potentially adjusting their pledge or issuing a refund.
“While this tool helps offset rising costs, we recognize that every project and backer relationship is unique,” Kickstarter said. “Our goal is to provide you with the flexibility and transparency necessary to navigate those conversations with clarity and care.”
Fulfillment of projects has always been a challenge on Kickstarter, with about one in 10 fully funded projects failing to deliver, though some very high-profile failures might make it seem like that outcome is even more common. But the tariffs do add an additional hurdle, as plenty of projects are reliant on suppliers in China and elsewhere to provide manufacturing or parts.
404 Media pointed out Stonemaier Games, a company that has funded multiple projects via Kickstarter, has filed a lawsuit over Trump’s tariffs, and offered insight into just how big of an impact the added costs can have: “We now face a $14.50 tariff tax for every $10 we spent on manufacturing with our trusted long-term partner in China,” company co-founder Jamey Stegmaier said. “For Stonemaier Games, that amounts to upcoming tariff payments of nearly $1.5 million.”
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