Will US Developers and Gamers Bear the Cost of Trump Tariffs?

According to the Entertainment Software Association (ESA), the tariffs imposed by the Trump administration will significantly harm the gaming industry.

 

The ESA represents many of the biggest names in the industry, including Microsoft, Sony, and Nintendo.In a statement sent to Kotaku, the association first asked the Trump administration to have some sort of consultation with industry members in a transparent process so that the average American is not significantly harmed.One of the tariffs has been temporarily suspended, giving Mexico a bit of a reprieve, but the tariffs on products from Canada and China remain in place.

Although games (if digital) are likely to be spared, tariffs could later affect hardware and accessories, not to mention the components needed to make consoles and PC hardware. Disc-based games (usually made in Mexico for US release) will also lose out if the US continues to be strict with its southern neighbor…

“Tariffs on video game consoles and related products would affect Americans of all ages across the country. We urge the administration to consult with the private sector in a transparent process to avoid significant harm to everyday Americans and one of the fastest growing entertainment sectors in the United States,” the statement read. This was later amended by the ESA and reported by Forbes: “Video games are one of the most popular and beloved forms of entertainment for Americans of all ages. Tariffs on video game consoles and related products would negatively impact hundreds of millions of Americans and 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 preserve the economic growth our industry supports.”

After US President Donald Trump set his sights on the European Union yesterday morning, a major trade war between the US and several countries is beginning to take shape. And who knows where it will end…

Source: Gamesindustry

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Anikó, our news editor and communication manager, is more interested in the business side of the gaming industry. She worked at banks, and she has a vast knowledge of business life. Still, she likes puzzle and story-oriented games, like Sherlock Holmes: Crimes & Punishments, which is her favourite title. She also played The Sims 3, but after accidentally killing a whole sim family, swore not to play it again. (For our office address, email and phone number check out our IMPRESSUM)

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