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Trump's Tariffs Threaten U.S. Economy

By EllieFeb 25,2025

The Entertainment Software Association (ESA) urges the Trump administration to collaborate with the private sector to mitigate potential harm to the video game industry resulting from the president's controversial import tariffs.

In a statement to IGN, the ESA emphasized the need for dialogue with the private sector "to find solutions that maintain the economic growth our industry supports." The statement highlighted the widespread popularity of video games in the U.S. and warned that tariffs on gaming devices and related products would negatively affect millions of Americans and damage the industry's substantial contribution to the U.S. economy. The ESA expressed its willingness to work with the administration and Congress to achieve this goal.

The ESA represents major players in the video game industry, including Microsoft, Nintendo, Sony Interactive Entertainment, Square Enix, Ubisoft, Epic Games, and Electronic Arts.

Concerns exist that U.S. tariffs could increase the price of physical video game products. Photo by Phil Barker/Future Publishing via Getty Images.
President Trump recently signed an order imposing tariffs on Canada, China, and Mexico, prompting retaliatory measures from Canada and Mexico, and a WTO lawsuit from China. While initially scheduled to take effect immediately, Trump announced a one-month pause on the Mexico tariffs following a conversation with the Mexican president.

Although currently focused on Canada, China, and Mexico, President Trump has indicated that tariffs on the European Union are "definitely happening," and expressed concerns about the UK's trade practices with the U.S., stating "we'll see how things work out" (via Reuters).

Analysts are assessing the potential impact. On X, MST Financial's David Gibson suggested that China tariffs would have minimal impact on the Nintendo Switch 2 in the U.S., but tariffs on Vietnam could alter this. He also noted potential challenges for the PS5, suggesting that Sony might need to increase non-China production.

Joost van Dreunen, author of the Super Joost newsletter, in a recent IGN interview, also highlighted the potential impact of tariffs on the price and consumer reception of Nintendo's new console, emphasizing the influence of the broader economic climate.

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