US gaming industry expects Trump tariffs to have dire consequences

Dmytro Kazantsev - 4 April, 06:25 PM

The Video Game and Software Association (ESA), which represents gaming companies in the US (including Nintendo, Microsoft and Sony), responded to the US president's imposition of tariffs, saying that these measures "will have a real and detrimental impact" on the gaming industry.

As Game File reports, according to ESA Vice President Aubrey Quinn, the production of gaming equipment, including consoles, is likely to be affected by the new tariffs.

Aubrey Quinn, ESA Vice President; photo from primagames.com

The publication notes that gaming equipment is manufactured in some of the countries that have been hit with these high tariffs. In addition, parts are sourced from many countries, and the devices often enter the United States multiple times as they are manufactured and prepared for sale. "Any one product that a consumer would buy is likely to be subject to many of the tariffs announced, all compounded on top of one another," said Aubrey Quinn, vice president of the Entertainment Software Association.

The new tariffs recently imposed by US President Donald Trump include a 46% tariff on Vietnam and a 34% tariff on goods from China, on top of the existing 20% tax, bringing the total tariff to at least 54%. Consumer electronics and video game company Nintendo, which has moved the bulk of its console production to Vietnam in recent years, recently announced the Switch 2 will start at $450, more than the Switch 1's launch price even after adjusting for inflation.

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The ESA believes that the tariff story is far from over, as there is a risk of retaliatory tariffs. "I think what we heard yesterday is not the end of the story, not for the United States, not for other countries," said Aubrey Quinn.

Indeed, today China's Ministry of Finance announced the introduction of additional tariffs of 34% on all US goods from April 10, 2025, in response to tariffs approved by US President Trump. Beijing also added 16 US companies to an export control list and imposed restrictions on exports of goods related to rare earth elements.

As a reminder, tech stocks plunged on Thursday after US President Donald Trump announced sweeping new import tariffs, causing panic in global financial markets and fueling fears of a trade war. Apple led the decline, with its shares down nearly 9%, its worst one-day performance since 2020. Most of Apple's devices are made in China, so an increase in tariffs on Chinese goods to 54% could have a significant impact on the price of an iPhone. If the costs are passed on to buyers, smartphone prices could rise by up to 43%, with top-of-the-line models costing up to $2,300. Even the cheapest iPhone 16e will rise in price from $600 to $858.