As U.S. President Donald Trump's controversial import tariffs take effect, the Entertainment Software Association (ESA) has called on the administration to engage with the private sector to mitigate potential harm to the video game industry. In a statement provided to IGN, the ESA emphasized the need for dialogue to sustain the economic growth driven by the gaming sector.
"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 represents several major video game companies, including Microsoft, Nintendo, Sony Interactive Entertainment, Square Enix, Ubisoft, Epic Games, and Electronic Arts.
Concerns have been raised that U.S. tariffs could increase the cost of physical video game products. Photo by Phil Barker/Future Publishing via Getty Images.
Over the weekend, President Trump signed an order imposing tariffs on Canada, China, and Mexico, prompting retaliatory tariffs from Canada and Mexico. China's Ministry of Commerce announced plans to file a lawsuit with the World Trade Organization. While the tariffs are set to take effect on Tuesday, Trump has decided to pause the tariffs on Mexico for a month following discussions with the country's president.
Although the current tariffs target Canada, China, and Mexico, President Trump has indicated that tariffs on the European Union are imminent. Regarding Britain, Trump remarked, "we'll see how things work out," and noted, "The UK is way out of line. We'll see ... but the European Union is really out of line," according to Reuters. He added, "The UK is out of line, but I think that one can be worked out. But the European Union is an atrocity, what they've done."
Industry analysts have been closely monitoring the potential effects of these tariffs. On X, MST Financial senior analyst David Gibson suggested that the China tariff would have "zero" impact on the Nintendo Switch 2 in the U.S., but cautioned that tariffs on Vietnam could alter the situation.
Now obviously if tariffs go onto Vietnam imports to the US then that changes the outcome. PS5 not so lucky but Sony might 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, stating, "the broader economic environment, particularly potential tariff impacts from the incoming U.S. administration, could significantly influence consumer reception."
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