Trump tariffs will bring significant harm to American gamers
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Companies like Nintendo and Sony were never going to stay quiet about this (Nintendo/Sony Interactive Entertainment)Unsurprisingly, the games industry isnt thrilled with Donald Trumps tariff plans and is asking to be consulted to prevent harming American gamers.If youve been paying attention, you likely already know that the tariffs US president Donald Trump has been threatening stand to make gaming a more expensive hobby than it already is.Many components for PCs and consoles come from China, which Trump has now imposed stricter tariffs against. These have also extended to Mexico and Canada, which analysts predict will only accelerate the death of the physical games market since a lot of disc production takes place in Mexico.Although Mexico and Canada have managed to broker deals to temporarily prevent Trumps proposed tariffs thats only till March, and the games industry is eager to use this brief pause to talk the US government into an exemption.The Entertainment Software Association (ESA) is the trade group for the games industry in the US and represents most of the big name publishers based in the country, as well as any foreign companies with American divisions.So, that includes not just the big three Nintendo, Sony, and Microsoft but also the likes of EA, Take-Two, and Epic Games. Not to mention the gaming divisions for Disney, Warner Bros., and Amazon.The industry successfully lobbied during Trumps first presidency, to ensure electronic goods wouldnt be affected by tariffs, so its not surprising it would feel compelled to do it again.In a statement provided to Kotaku, the ESA says, Tariffs on video game devices and related products would impact Americans of all ages across the country.We urge the administration to consult with the private sector in a transparent process to avoid causing significant harm to everyday Americans and to one of the fastest growing entertainment sectors in the United States.A follow-up statement sent to IGN adds how such tariffs would also be economically detrimental: Tariffs on video game devices and related products would negatively impact hundreds of millions of Americans and would harm the industrys significant contributions to the US economy.No doubt the ESA hopes to seek another exemption, so companies wont have to raise prices for their consoles and games. As a reminder, China is where most consoles are made, and Microsoft also has manufacturing facilities for its Xbox consoles in Mexico.Such tariffs risk impacting prices in the rest of the world too. After all, if consoles and games became more expensive in the US, less people would feel inclined to buy them. So, companies would have to raise prices elsewhere to try and make up for the loss in profits.More TrendingNintendo in particular must be feeling antsy about the whole situation, since its meant to be launching the Nintendo Switch 2 this year and it may need to bump up whatever price it has in mind for it.That said, MST Financial senior analyst David Gibson has suggested the Switch 2s price wont be impacted by any Chinese tariffs, pointing out that Nintendo shifted part of Switch production into Vietnam.So, Vietnam production will supply to the US and China etc. will supply to the rest of the world. Smart, says Gibson though he admits things will go differently if Vietnam is ever struck by tariffs too.While Mexico and Canada are currently trying to strike new arrangements, China so far plans to retaliate with its own tariffs on US imports. Reuters reports these will come into effect on February 10. Will the industry succeed in pushing for an exemption? (ESA)Emailgamecentral@metro.co.uk, leave a comment below,follow us on Twitter, andsign-up to our newsletter.To submit Inbox letters and Readers Features more easily, without the need to send an email, just use ourSubmit Stuff page here.For more stories like this,check our Gaming page.GameCentralSign up for exclusive analysis, latest releases, and bonus community content.This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. Your information will be used in line with our Privacy Policy
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