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ESA Warns: Trump's Video Game Tariffs to Harm Everyday Americans

May 25,25(2 months ago)
ESA Warns: Trump's Video Game Tariffs to Harm Everyday Americans

As U.S. President Donald Trump's controversial import tariffs come into effect, the Entertainment Software Association (ESA) has called on the administration to engage with the private sector to mitigate any adverse effects on the video game industry.

In a statement updated and shared with IGN, the ESA emphasized the importance of dialogue with the private sector "to find ways to sustain the economic growth supported by our 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 a host of major video game companies, including Microsoft, Nintendo, Sony Interactive Entertainment, Square Enix, Ubisoft, Epic Games, and Electronic Arts.

Concerns have been raised about the potential impact of U.S. tariffs on the pricing 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 measures from Canada and Mexico, while 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, though Trump has agreed to a one-month pause on tariffs against Mexico following a conversation with its president.

While the current tariffs target Canada, China, and Mexico, President Trump has also indicated that tariffs on the European Union are inevitable. Regarding the UK, Trump stated, "we'll see how things work out," adding, "The UK is way out of line. We'll see ... but the European Union is really out of line. 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 actively discussing the potential ramifications of these tariffs. On X, MST Financial senior analyst David Gibson commented that the tariff on China would have "zero" impact on the Nintendo Switch 2 in the U.S., but noted that 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 also weighed in on the potential cost implications for 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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