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Article: An update regarding Tariffs

An update regarding Tariffs

An update regarding Tariffs

Tariff Update:

Dear Customers and Industry Partners, 

In early 2025, the U.S. government imposed a 145% tariff on model trains imported from China—products that had previously been tariff-free. This change significantly increases the cost of production and importation for our industry, and unless addressed, it will have major consequences for pricing, availability, and the long-term viability of U.S.-based model train
companies.

At Broadway Limited, we want to provide you with a clear explanation of what’s happening, how it affects you, and what steps we’re taking in response.

 

What Tariffs Mean for Model Train Pricing and Availability:

A tariff is a tax collected by the US government from US companies when we import a product. Trains from China now have a 145% tariff, meaning a $200 model would have a tax of $290, making our total cost $490. 

Manufacturers, importers, distributors and hobby stores can absorb some of this, but the retail price would still rise by around 80%, meaning the retail price for an HO diesel would rise from $375 to $670. An HO Big Boy would rise from $849 to $1,500.

We believe that if tariffs are left at this level, the model train industry in the US will be wiped out, including all manufacturers, distributors and hobby stores. BLI started manufacturing in Vietnam 6 years ago, but the process is slow. We now import 1/3 of our product from Vietnam, which only has a 10% tariff.

BLI would like to manufacture in the US, but many of the molds and components are not available here, and since the tariffs were implemented at such a high rate with almost no warning, we will be bankrupt before we can start production. For Broadway Limited, this means our 25 year old company will close and our 15 employees in Ormond Beach, FL will lose their jobs permanently.

 

How can you help?

Broadway Limited would like our government to negotiate with China to eliminate unfair trade practices without destroying the model train industry.

Congress has the power to negotiate tariffs. Use the links below to contact your senators and representative asking them to reduce these tariffs to a reasonable level and implement them gradually to save our hobby and the jobs of American workers employed in the industry.


Contact your Senator: https://www.senate.gov/senators/senators-contact.htm

Contact your State Representative: https://www.house.gov/representatives/find-your-representative

You can also send a message to the President at: https://www.whitehouse.gov/contact.

You can email the US Trade representative, Ambassador Jamieson Greer at engagement@ustr.eop.gov.


BLI is part of the Hobby Industry Coalition. See the video produced by our fellow model train manufacturers HERE and visit http://hobbycoalition.org/ to find out more about how the industry is working together to solve this issue.

 

Thank you for your support!

Thank you for your continued support. We urge you to continue pre-ordering our products. Since the tariff situation changes daily, we will continue to announce products at their regular MSRP and will increase prices as needed when the products clear customs. You will be able to cancel orders if the tariff is still in place when the product arrives.

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