Games

ESA Warns That Trump Trade Tariffs Will Have ‘Real and Detrimental Impact’ on Video Game Industry

BBG News

The Entertainment Software Association (ESA), the U.S. video game trade group, has sounded an alarm stating that the newly proposed tariffs by President Donald Trump could significantly and negatively affect the video game industry.

In simpler terms, Aubrey Quinn, Senior Vice President at ESA, stated to Game File (as reported by VGC), that most items a consumer purchases are expected to be hit with multiple tariffs, each stacking on top of the other. Furthermore, he warned that retaliatory tariffs could exacerbate the situation even more.

She stated that what was discussed the day before might not be the final chapter, not just for the United States but also for other nations. Trump’s imposition of tariffs has affected numerous countries, with a significant tariff particularly on China, where most tech goods are produced. A 10% tariff has been applied to imports from China, Vietnam, and Japan, which Trump identified as the most problematic parties. This is over and above the larger tariffs of 54%, 46%, and 24%.

Regarding Trump’s proposal for increased domestic production of goods in the US, Quinn points out that such transformations can’t be accomplished swiftly. Quinn suggests that every corporation, even those in the video game industry, should consider what is beneficial for consumers, profitable for business, and advantageous for employees when making decisions.

She noted that supply chains are intricate and they don’t transform instantaneously. Decisions and considerations regarding them aren’t something that can happen swiftly, nor are they impulsive responses to any specific news.

It’s evident that Trump’s trade tariffs are already showing their effects on prices, and according to a report from the Financial Times, the price of Nintendo Switch 2 could be set at $449.99 as an effort by Nintendo to counteract the impact of these tariffs. If these tariffs persist, you can expect a substantial increase in the cost of games and hardware.

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2025-04-04 14:42

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