The Trump administration has introduced new tariffs on goods from China, Canada, and Mexico, impacting the prices of video games, consoles, and other tech items. The 25% tariff on Canadian goods and 20% tariff on Chinese goods will likely affect consumers and companies in the gaming industry.
The tariffs, which took effect on Tuesday, include a tax on imports from Canada and Mexico, as well as goods from China. Companies like Target, Best Buy, Acer, and others have warned of potential price increases due to these taxes. Gamers can expect rising prices for tech and gaming goods, with video game consoles, smartphones, GPUs, laptops, and more affected by the tariffs on Chinese goods.
Analysts predict that the impact on prices will be significant, but exact details remain unclear. Some manufacturers are already taking action by moving production to Southeast Asia. However, 75% of consoles imported to the US come from China, making the impact on Nintendo’s Switch 2 console price uncertain.
Circana analyst Mat Piscatella warned that physical games may disappear from store shelves due to the tariffs on Mexican goods. Additionally, his report highlights a trend of declining gaming amongst younger players in the US market, partly due to increasing costs and everyday expenses outpacing gaming budgets.
The Entertainment Software Association previously expressed concerns about the impact of these tariffs on gamers and the economy. While the exact scope is unknown, it’s clear that gaming goods will not be immune to this new policy.
Source: https://www.ign.com/articles/new-us-tariffs-will-impact-consoles-gpus-and-physical-games-say-analysts