US lowers tariffs, but retro gamers are still getting a raw deal

Update, May 13, 2025 (5:30 AM ET): The situation remains volatile, as the Trump administration revealed that smaller shipments are excluded from the new trade agreement (via Axios). That means that orders previously duty-free due to the de minimis exemption were subject to a higher 120% rate.

However, another executive order was issued late on Monday, reducing that rate to 54% or $100 per postal item. This is still significantly higher than the rate on other goods, and it may incentivize companies to open US warehouses or ship goods to middlemen in the US. That would take months, and with no clear indication of what’s next, companies might opt to wait and see how things develop.

Good news for Retroid fans, though, as the company will continue to cover tariff fees for US customers until May 31. It’s currently working through order backlogs, with the Kiwi, Teal, and Berry colorways of the Pocket Classic shipping out this week.

Original article, May 12, 2025 (5:10 AM ET): It’s been a roller coaster of a year for retro gamers. Exciting new devices like the Retroid Flip 2 and Classic were announced right before a massive tariff hike made them unaffordable in the US. Thankfully, the US and China just announced a new agreement to pause the tariffs (via CNBC), bringing the rate down to 30% for Chinese-made goods, including retro gaming handhelds.

Prior to the announcement, handhelds were taxed at the maximum rate of 145% under the Trump administration’s tariffs. This was a dramatic turn after decades of tax-free imports under the de minimis exemption, which eliminated all duties on goods under $800.

However, the de minimis exemption is not currently set to return, so buyers will still be hit with import fees on shipments from China. It’s not yet clear what the exact terms of the agreement are, but it appears that the 10% reciprocal tariffs are still in effect, with an additional 20% tariff on Chinese goods coming into the US relating to fentanyl. That brings the total to 30%, at least until China and the US can come to an agreement to curbing fentanyl-related imports.

In any case, this is merely a 90-day pause on the full tariffs while negotiations continue. It’s impossible to predict what will happen next, so this might be your best chance if you’ve been holding off on buying a retro gaming handheld.

The full tariffs took effect on May 1, with several retro gaming handheld makers stopping shipments to the US in the aftermath. Retroid rushed to ship Pocket Flip 2 and Pocket Classic pre-orders to US customers before the deadline hit. Expect shipments to resume later this week as tensions cool between the two countries.