Playdate maker Panic refunds tariff surcharges to customers

After the Supreme Court ruled that President Trump’s tariffs were an unlawful use of emergency powers, Panic, the manufacturer of the Playdate handheld gaming console, is refunding tariff surcharges to its customers. The company received its own refund from the US government and is passing it along to those who were affected.

During a specific period this year, Playdate orders were subject to a 19% tariff surcharge. Panic initially attempted to absorb the cost itself, but found this financially unsustainable for a small company. As a result, the company added a clearly labeled tariff line item to customer checkout pages, making the additional charges transparent.

Now that the government has ordered the refunds, Panic is taking the principled stance of returning the money to customers. “There was a specific window of time this year where we charged tariffs to customers,” Panic co-founder Cabel Sasser explained. “We tried absorbing the cost for a while, but that was financially difficult for a small company like ours. We made the tariff a very obvious and clearly labeled line item on checkout for any customer affected.”

The company emphasized that it did not feel entitled to keep the money, with Sasser stating “It’s just not our money to keep.” Panic has begun sending out emails to affected customers notifying them of the incoming refunds.

Sources