As U.S. President Donald Trump's controversial import tariffs begin to take effect, the Entertainment Software Association (ESA) has issued a strong call to the administration to engage with the private sector. This engagement is crucial to mitigate any adverse effects on the video game industry.
In a statement provided to IGN, the ESA emphasized the need for dialogue with the private sector to "find ways to sustain the economic growth supported by our sector." The association highlighted the significance of the video game industry to the U.S. economy and the potential negative impact of tariffs on video game devices and related products.
"Video games are one of the most popular and beloved forms of entertainment for Americans of all ages. Tariffs on video game devices and related products would negatively impact hundreds of millions of Americans and would 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 sustain the economic growth supported by our sector."
The ESA represents a broad coalition of major video game companies, including Microsoft, Nintendo, Sony Interactive Entertainment, Square Enix, Ubisoft, Epic Games, and Electronic Arts.
Concerns are rising that U.S. tariffs could increase the price of physical video game goods. Photo by Phil Barker/Future Publishing via Getty Images.
Over the weekend, President Trump signed an executive order imposing tariffs on Canada, China, and Mexico. This action prompted retaliatory measures from Canada and Mexico, while China's Ministry of Commerce announced plans to file a lawsuit with the World Trade Organization. The tariffs were scheduled to take effect on Tuesday, but President Trump decided to pause the tariffs on Mexico for a month following discussions with the country's president.
While the current tariffs target Canada, China, and Mexico, President Trump has also indicated that tariffs would "definitely happen" with the European Union. Regarding the UK, Trump expressed a more cautious stance, stating "we'll see how things work out."
"The UK is way out of line. We'll see ... but the European Union is really out of line," said President Trump (via Reuters). "The UK is out of line, but I think that one can be worked out. But the European Union is an atrocity, what they've done."
As the situation develops, analysts have been actively discussing the potential impact of these tariffs on the video game industry. On X, MST Financial senior analyst David Gibson commented that the China tariff would have "zero" impact on the Nintendo Switch 2 in the U.S., but tariffs on Vietnam could alter this outcome.
Now obviously if tariffs go onto Vietnam imports to the US then that changes the outcome. PS5 not so lucky but Sony might to scale up non-China production to help solve the problem.
— David Gibson (@gibbogame) February 2, 2025
In a recent interview with IGN, Joost van Dreunen, author of the Super Joost newsletter, also weighed in on how tariffs might affect the cost of Nintendo's new console. He noted that "the broader economic environment, particularly potential tariff impacts from the incoming U.S. administration, could significantly influence consumer reception."
