The End of Cheap Imports?
US Handheld Tax could mean the golden age of ultra-affordable retro gaming handhelds may be coming to an end. A new U.S. executive order aims to close the de minimis trade exemption, which previously allowed small-value imports (under $800) to enter the U.S. tax-free. Originally set to take effect in February 2025, the policy was delayed to finalize customs procedures—but now, starting May 2, 2024, tariffs will apply to most budget-friendly devices.
For retro gaming enthusiasts, this means higher prices on popular handhelds from brands like Anbernic, Retroid, PowKiddy, and AYANEO, as well as potential delays for the Nintendo Switch 2. Here’s what you need to know.
How the New US Handheld Tax Works
- Who’s Affected?
- Purchases under $800 from China, Vietnam, and other tariff-targeted countries.
- Common retailers: AliExpress, Temu, Shein, and direct OEM sites (Retroid, Anbernic, etc.).
- Shipping methods: Primarily USPS, but couriers like DHL and FedEx may also pass fees to buyers.
- New Duty Rates (Effective May 2, 2024)
- 30% of the item’s value OR
- $25 per item (increasing to $50 per item after June 1)
- Price Increase Examples
- R36S (Budget handheld) | $20 increases to $26–$30 |
- Retroid Pocket Flip 2 | $229 increases to $254–$297 |
- AYANEO Pocket EVO | $459 increases to $596+ |
- Nintendo Switch 2 | $449.99 increases to $584+ (46% Vietnam tariff) |
Can You Avoid the US Handheld Tax Tariffs?
Possible Loopholes (And Why They Might Not Work)
- Alternative Shipping (DHL, FedEx, 4PX)
- The order targets USPS-delivered packages, but most couriers still hand off to USPS for final delivery.
- Buyers may receive post-delivery bills for duties + handling fees.
- Bulk Orders Over $800
- The de minimis exemption still applies to shipments valued above $800.
- However, most retro handhelds are bought individually.
- Pre-Tariff Purchases
- Order before May 2 to lock in current prices.
Biggest Impacts on the Retro Gaming Market
- Budget Handhelds Will Survive (But Cost More)
- A $20 R36S becomes $26—still cheaper than Amazon resellers.
- Sub-$50 devices remain viable but lose their “impulse buy” appeal.
- Premium Handhelds Hit Hardest
- AYANEO, OneXPlayer, and Retroid’s high-end models could see $100+ price jumps.
- Example: The $459 AYANEO Pocket EVO may cost $596 after tariffs.
- Nintendo Switch 2 Delays & Price Hikes
- Pre-orders delayed to assess tariff impacts (originally set for April 9, 2025).
- 46% tariff on Vietnam-made consoles + 24% on Japan-made cartridges.
- The $449.99 base model could exceed $584 at launch.
Will US Handheld Tax Kill the Retro Handheld Market?
Short answer: No, but it will shrink.
- Low-margin devices (e.g., sub-$30 emulators) may disappear.
- Mid-range devices (e.g., Retroid Pocket 4) will remain but cost more.
- Luxury handhelds (e.g., AYANEO) could see reduced demand.
What Should You Do Now?
- Buy Before May 2 to avoid tariffs.
- Check for Coupons/Discounts on AliExpress, Temu, and OEM sites.
- Follow Updates—policies may shift (as seen with the February 2025 delay).
US Handheld Tax Final Thoughts
The new US handheld tax marks a major shift for retro gaming enthusiasts. While budget devices will survive, premium imports and the Nintendo Switch 2 face steep price hikes. If you’ve been eyeing a handheld, now’s the time to buy.