Kevin Bates managed to quit his day job and move to China after his game-playing business card, the Arduboy, went viral in 2014. But a decade later, Trump’s staggering and inexplicable new US tariffs are driving him out of business.
Just as he was about to turn a profit for the first time, just before he was about to bring a new product to retail, he tells The Verge that his company can no longer survive as-is. He says that despite lifetime Arduboy sales of over $1 million, much of it from recent growth in 2023 and 2024, Trump’s new 104 percent China tariffs will be the beginning of the end.
“I just like making circuit boards and helping people learn to code games. This is all too much,” he says.
Even if he wanted to — Bates admits he’s been looking to sunset Arduboy for a while — he says he wouldn’t be able to satisfy Trump’s stated goal of restarting manufacturing in the US.
“There are no manufacturers in the USA who would even answer an email to produce Arduboy, much less give a good price. I could build them myself and end up making about $10 an hour, still paying a crazy amount for components.”
Instead, he says, his options are to dramatically raise prices, find a way around the tariffs, or simply kill off Arduboy for good.
“The fact Arduboy could exist at all was kind of a miracle of global trade. An individual person, producing and distributing an international product with margins that would never work at a larger company. I didn’t need 80 percent markup to survive,” he says, adding that his actual margins ranged from 30 to 50 percent.
Trump’s US tariffs would entirely wipe out those margins, and he says China’s retaliatory tariffs would hurt too, as they would impose a 34 percent tariff on the Arduboy’s US-made processor, which Bates says is the most expensive component in the system.
While he’s hopeful that some larger organization might buy Arduboy and take up the torch, he admits that’s not terribly realistic in this economic climate, and he’s already declaring Arduboy “dead” on his LinkedIn and in the Arduboy forums. He’s already looking for a new day job once again.
But he says Arduboy isn’t quite dead yet. He wants to launch one last Kickstarter for a USB-C version of the Arduboy with “more features like real time clock, IR blaster, and link cable support,” assuming he can figure out how to ship them at a price people will pay. He says he already saw $99 Arduboy FX Special Edition as overpriced for what it is, and he isn’t looking forward to charging $200 for a new version or saddling buyers with customs fees should he choose to drop-ship them.
“The only realistic solution is to warehouse the inventory somewhere that doesn’t have Chinese import taxes, and drop ship everything. I visited my factory last year to talk about this, and they said all their customers are in the same situation so they said they would have a solution. But one has not materialized yet,” he says.
Speaking of drop-shipping and customs fees, that is probably what you should expect if you buy the new banana-shaped Arduboy or the last few remaining units of the Arduboy FX Special Edition. “I am planning to fulfill the orders but they may be drop shipped, so U.S. customers should be aware that import taxes may now apply,” he tells The Verge. But he also may just turn off Banana-Bit preorders, as he says he’s only sold about a dozen so far.
He also warns these packages could get held up at US customs for a time, because Trump has also gotten rid of the de minimis exemption that let low-value packages enter the US duty-free. “That’s going to impact everything from Shein to Temu to AliExpress, and honestly, it’s going to be chaos. U.S. customs isn’t ready for that volume,” he says.
Bates says Trump’s trade war is “an absolute unmitigated disaster for anyone without the ability to dramatically restructure.”
“I guess that’s the point,” he adds.
