If the United States of America and China do not strike a deal, then the tariff might launch this autumn, resulting in a hike for the console prices.

After Donald Trump, the president of the United States has put a 25% tariff on 250 billion dollars worth of Chinese goods, the next round of tariffs might come on September 1 with a 10% tax on 300 billion dollars worth of products. It’s possibly going to happen because Trump and Xi Jinping, the paramount leader of China, have not come to terms at their meeting in Shanghai. Their next round of talks is planned to happen in September after Trump’s new tariffs might come into action.

The United States’ Federal Reserve has decided to cut the interest rates to keep the country have a favourable outlook even though the tension with China is growing (and thus, the tariff war might reach unseen levels). They were wary to cut the interest rates as Trump has often talked about this subject on Twitter.

Don’t forget that in June, Nintendo, Sony, and Microsoft have written a joint letter against the next round of tariffs, and previously, we also wrote about how Hiroki Totoki, Sony’s chief financial officer, has already hinted at a possible raise in the PlayStation console prices. Nintendo has partially moved the production of the Nintendo Switch and the Nintendo Switch Lite from China to Vietnam due to the trade wars, and Foxconn, the manufacturer of Apple’s iPhone products, has also done the same move.

The tariffs – if come into law – will raise the price of the Xbox Project Scarlett and the PlayStation 5, both due to launch in late 2020. If they are set to cost between 400-600 USD, they might cost 40-100 dollars more, and it is likely going to increase the European pricing as well.

Source: Gearnuke