Kevin Bates, a senior editor and founding member of The Verge, is known for his expertise in gadgets, games, and toys. Over a distinguished career spanning 15 years, he has edited for major tech publications such as CNET, Gizmodo, and Engadget. However, his own venture into the world of game development, Arduboy, is facing an unprecedented challenge that threatens to bring his innovative project to an untimely end.

Bates first took the leap into entrepreneurship back in 2014 when Arduboy, a handheld gaming console that functions as a business card, went viral. Encouraged by its popularity, he made the bold decision to quit his stable day job and move to China to focus on his passion. Fast forward nearly a decade, and the landscape has changed dramatically. New tariffs imposed by the Trump administration are now poised to derail his business, just as he was on the brink of achieving profitability for the first time.

In an exclusive interview with The Verge, Bates candidly expressed his distress, stating, Just as I was about to turn a profit, Ive realized my company can no longer survive in its current form. Despite achieving lifetime sales exceeding $1 million, largely due to a resurgence in interest during 2023 and 2024, the staggering 104 percent tariffs on imports from China are a crippling blow. This is all too much, he lamented, reflecting on the struggles he faces in light of these new regulations.

Bates, who has been contemplating winding down Arduboy for some time now, emphasizes the difficulty in meeting President Trump's goal of revitalizing US manufacturing. There are no manufacturers in the USA who would even respond to an email about producing Arduboy. The costs are simply prohibitive, he explained. Even if he attempted to manufacture the devices himself, he would only earn approximately $10 an hour while grappling with exorbitant component costs.

Faced with a dilemma, Bates is now weighing several drastic options. He could opt to raise prices significantly, seek loopholes around the tariffs, or ultimately decide to shutter Arduboy permanently. The existence of Arduboy was almost a miracle of global trade. A small individual could create and distribute an international product without the steep margins that a larger corporation would need to survive, Bates noted, revealing that his actual profit margins typically ranged between 30 to 50 percent. However, the new tariffs threaten to obliterate these margins entirely.

Moreover, the situation is exacerbated by retaliatory tariffs from China, which impose a 34 percent tax on the Arduboy's US-made processor, the most expensive component of the device. As he considers the future, Bates remains somewhat hopeful that a larger organization might acquire Arduboy, but he recognizes that this possibility is slim in the current economic climate. With a heavy heart, he has already begun to declare Arduboy dead on LinkedIn and various forums.

Nevertheless, Bates isn't ready to throw in the towel just yet. He has plans for one last Kickstarter campaign aimed at launching a new version of Arduboy equipped with USB-C connectivity and enhanced features, such as a real-time clock, an IR blaster, and link cable support. Assuming I can find a way to ship them at a price that people are willing to pay, he remarked, hinting at the uncertain future of this venture. He expressed concerns over the pricing, recalling how even the $99 Arduboy FX Special Edition felt overpriced, and he is apprehensive about potentially charging $200 for the new iteration.

The most practical solution right now would be to store the inventory in a location that avoids Chinese import taxes and utilize drop-shipping for delivery, Bates explained. He had visited his factory last year to discuss these logistical challenges, but lamented that a viable solution has yet to come to fruition.

When it comes to fulfilling current orders, particularly for the new banana-shaped Arduboy and the dwindling stock of Arduboy FX Special Editions, Bates has warned customers to be prepared for the possibility of drop-shipping. U.S. customers should be aware that import taxes may now apply, he cautioned, adding that he might even discontinue preorders for the Banana-Bit due to lackluster sales.

Additionally, he forewarned that packages could face delays at U.S. customs, given Trumps recent elimination of the de minimis exemption, which previously allowed low-value imports to enter the U.S. duty-free. The repercussions of this policy shift will be widespread, impacting everything from Shein to Temu to AliExpress, and its likely to create chaos at customs. They simply arent prepared for the volume, Bates stated emphatically.

In closing, Bates described Trumps trade war as an absolute unmitigated disaster for anyone without the ability to dramatically restructure their business model. Reflecting on the broader implications of these tariff policies, he concluded, I guess thats the point.