Summary
- The Entertainment Software Association thinks tariffs on video games will “negatively impact hundreds of millions of Americans.”
- Digital games might dodge price hikes, but physical consoles and games face uncertainty if the Trump administration imposes tariffs on China, Canada, and Mexico.
- The President recently floated the idea of tariffs on computer ships and semiconductors coming from Taiwan in order to bolster American manufacturing.
If you’ve been on the fence about picking up a new gaming console, you may want to consider doing it sooner rather than later.
Over the weekend, President Trump announced sweeping 25 percent tariffs on Canada and Mexico, and a 10 percent tariff on China. This could affect many industries in the US, including the gaming industry. In response to the tariffs, the Entertainment Software Association (ESA) released a statement outlining its concerns about the possible ramifications of tariffs.
“Video games are one of the most popular and beloved forms of entertainment for Americans of all ages. Tariffs on video game devices and related products would negatively impact hundreds of millions of Americans and would harm the industry’s significant contributions to the U.S. economy,” the ESA said. “We look forward to working with the Administration and Congress to find ways to sustain the economic growth supported by our sector.”
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Digital games likely to avoid tariffs, but consoles can’t
The PS5 and the Nintendo Switch 2 could be affected
Nintendo / Pocket-lint
If Trump’s tariffs are implemented, the price of physical games with discs, gaming consoles, and accessories could be impacted. Popular games consoles like the PS5 or Nintendo Switch, which are primarily made in China, could see price increases, especially if the ESA thinks the tariffs will “negatively impact hundreds of millions of Americans.”
Games that are distributed digitally likely won’t be impacted, but the industries that work on designing/creating those games and the consoles they play on could be. For many, the price of video games and consoles is already high, so the thought of them going up even more is troublesome, especially with the release of the Switch 2 expected later this year. However, Nintendo has started shifting some of its console production to Vietnam, so its possible the Switch 2 could avoid tariffs.
Additionally, Trump recently floated the idea of imposing tariffs on computer chips and semiconductors coming from Taiwan to encourage American companies to manufacture them domestically. Trump has temporarily postponed the 25 percent tariff on Mexico by one month, as he said he’d reached a deal with them regarding the southern border. The Canadian government is in talks with the Trump administration, while China has responded by saying it will “defend its legitimate rights and interests.” Buckle up, gamers; the next couple of months will be interesting.
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