The Entertainment Software Association (ESA) has expressed concerns over the potential negative impact of President Donald Trump's new import tariffs on the video game industry. In a statement to IGN, the ESA urged the Trump administration to engage with the private sector to mitigate any adverse effects on the industry, which is a significant contributor to the U.S. economy.
"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. We look forward to working with the Administration and Congress to find ways to sustain the economic growth supported by our sector," the ESA stated.
The ESA represents major video game companies such as Microsoft, Nintendo, Sony Interactive Entertainment, Square Enix, Ubisoft, Epic Games, and Electronic Arts.
Over the weekend, President Trump signed an order imposing tariffs on Canada, China, and Mexico, prompting retaliatory measures from Canada and Mexico. China's Ministry of Commerce announced plans to file a lawsuit with the World Trade Organization. The tariffs are scheduled to take effect on Tuesday, although Trump has decided to pause the tariffs on Mexico for a month following discussions with the country's president.
While the current tariffs target Canada, China, and Mexico, President Trump has indicated that similar measures could be applied to the European Union. Regarding the UK, Trump remarked, "we'll see how things work out," but criticized the European Union, calling it "an atrocity" for its trade practices.
Analysts have been closely monitoring the potential effects of these tariffs on the video game industry. MST Financial senior analyst David Gibson stated on X that the China tariff would not affect the Nintendo Switch 2 in the U.S., but tariffs on Vietnam could alter this scenario.
Now obviously if tariffs go onto Vietnam imports to the US then that changes the outcome. PS5 not so lucky but Sony might to scale up non-China production to help solve the problem.
— David Gibson (@gibbogame) February 2, 2025
In a recent interview with IGN, Super Joost newsletter author Joost van Dreunen discussed the potential impact of tariffs on the cost of Nintendo's new console, noting that "the broader economic environment, particularly potential tariff impacts from the incoming U.S. administration, could significantly influence consumer reception."
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