You might not think that politics or global trade would mess with your cozy puzzle nights, but it does! The global jigsaw puzzle market is facing a new and complex challenge: the latest wave of tariffs stemming from escalating trade tensions, particularly between the U.S. and China. Let’s break down the tariffs and explore their effect on the puzzle industry.
What Are Tariffs and What’s the Current Trade War About?
Tariffs are taxes that governments place on imported goods. The goal is usually to make foreign products more expensive, encouraging consumers to buy domestic alternatives. However, tariffs can also lead to higher prices for consumers and countermeasures from other countries.
The current trade war refers to rising tensions, especially between the U.S. and China. This year, the U.S. announced new tariffs targeting Chinese imports and consumer goods. China is currently facing tariffs as high as 145% and the rest of the world hasn’t been spared: we are currently in a “tariff pause,” with 10% tariffs applied to most other countries, but 20% tariffs have been proposed for the EU, and 46% for Vietnam after the 90-day pause ends – just to name a few. China has responded with its own counter-tariffs (125%), and multiple countries are preparing countermeasures, creating uncertainty across global supply chains.
The key issue with tariffs is that the importer, not the country they target, is responsible for paying them. So for companies whose production is concentrated abroad, these policies are causing significant cost increases and operational headaches.
Why Puzzle Industry Is Vulnerable
Like many consumer goods, jigsaw puzzles are part of a global supply chain. They rely heavily on a specific type of manufacturing expertise: precision die-cutting, high-resolution color printing, and intricate packaging. Most jigsaw puzzles sold in Europe and North America are manufactured in countries like Poland, Turkey, and the U.S. However, much of the puzzle-making expertise, particularly for high-volume, cost-efficient production, is concentrated in China, where entire industrial clusters have been optimized for decades to serve the global puzzle and game markets.
Impact on Pricing & Profit Margins
The tariffs haven’t been good news for puzzle manufacturers relying on overseas production. Retail prices of puzzles have already been creeping upward due to increased production costs. Now, the added tariff costs again either have to be absorbed (shrinking margins) or passed on to the consumer (raising retail prices).
Big and well-known puzzle brands may weather the change because they have the advantage of large-scale production: large production volume usually leads to lower production costs. On the opposite, the fewer puzzles you produce, the higher the unit cost, and the less margin you have to begin with. This is why smaller or mid-range companies often face tougher decisions: cut costs, relocate production, or risk pricing themselves out of the market.
So the tariffs will most likely hit indie puzzle brands hard, but of course also the big established companies will struggle. It raises a concern: where will companies turn for profit if costs continue to rise? Hopefully not from the art and artists or by exploitation.
Shifting the Pieces: Can Production Move Elsewhere?
Some companies are attempting to relocate production to countries outside the worst tariff zones instead of raising prices, but the transition is far from simple. The capacity and the level of manufacturing specialization found in China isn’t easily replicated. Factories outside the region might lack the equipment, skilled labor force, or scale to match China’s output. Manufacturers in countries like Germany and Poland do offer premium puzzle production, but at a significantly higher price point. Relocating production often brings higher labor and manufacturing costs, undermining any savings from dodging tariffs.
What Lies Ahead?
At the moment, it’s difficult to predict what’s going to happen, because the situation changes rapidly. In the short term, we might see higher prices, locally restricted distribution, or fewer releases from indie puzzle makers. The uncertainty is for sure putting pressure on puzzle companies to rethink their supply chains and distribution areas. In the long run, this disruption could push the industry toward smarter, more resilient manufacturing strategies, though likely at a higher cost baseline.
One thing is clear: even a quiet, pieceful pastime like puzzle-solving isn’t immune to the complexities of global trade or politics. As with the puzzles themselves, companies will need patience, foresight, and a bit of creative thinking to solve the bigger picture.
I'd love to hear your thoughts:
Are you seeing the effects of tariffs already?
Do you think this will push the industry toward more sustainable, regional production?
Or is this just another phase the industry will adapt to and move past?
Drop a message or join the conversation, after all, we’re all trying to piece this together.
Hi Rosa,
Marcia from Art & Fable Puzzle Company here!
Rosa, you are 100% right on all your points. Margins are very tight for Independent or boutique brands. We have already paused production of our next collection to figure this out. A 90-day pause on tariffs for EU imports does not help. Our production times are 4 months at the minimum. We could be facing higher tariffs after 90 days. But even a 10% tariff is substantial for us.
The other issue is that we pay for our puzzles in Euros. The value of the dollar dropped with the announcement of the tariffs, so now our dollar goes less far. I feel so badly for the companies that produce in China, but we also need to pause, pivot, and rethink everything.
When we started researching manufacturers in 2018, we tried and tried again to have our puzzles made in the USA. We would have paid a premium price for this. But no manufacturers were willing to make European-style (vs random cut) puzzles with the velvet touch, which was the foundation of our brand - ZERO GLARE is what we were after, smooth pieces and rich colors. Because we license predominately painters, we wanted every brushstroke seen in the art!
We tried Germany, and The Netherlands (where the word is out that Cobble Hill is going). Only our manufacturer in Poland was willing to work with us. The point is, that you can't just change manufacturing overnight to a new facility in a new country. Our manufacturers are our partners. However, because we have always wanted to make our puzzles in the US, we are researching it again. And to our surprise, a US manufacturer can now make our puzzle to spec. However, the price is high, maybe too high. US freight hauling is also very high. Our highways are already fraught with trucks because train freight is practically non-existent. Who wants truck traffic to triple on highways?
A great point you have made Rosa, is that manufacturing cost is based on the QTY of each title we produce. We are truly, small-batch makers. This is why our puzzles cost more in the first place. Could we charge more? Could we charge $35.95 instead of $32.95 for a 1000-pc puzzle? How many puzzles a year would your readers pay $35.95 for a 1000-pc puzzle? If puzzles made in China went up to $29.95, maybe we would be competitive with our prices. But the larger companies will probably move manufacturing before they try to get $10.00 more a puzzle. They know what price they need to sell their puzzles, to sell enough of them. That is why they are in China in the first place! They may have the purchasing power to have a manufacturer adapt to their needs anywhere in the world, but they know that US manufacturing prices will always be more.
Please keep supporting small puzzle companies as much as possible, no matter where they are made! Otherwise, the trend for boutique puzzles will be over. Thanks for listening! Marcia
Loved the sharp analysis! Keep it up 💪