As U.S. President Donald Trump's controversial import tariffs begin to take effect, the Entertainment Software Association (ESA) has expressed concerns about their potential impact on the video game industry. In a statement provided to IGN, the ESA urged the Trump administration to engage with the private sector to mitigate any adverse effects on the industry.
"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 major video game companies such as Microsoft, Nintendo, Sony Interactive Entertainment, Square Enix, Ubisoft, Epic Games, and Electronic Arts.
Concerns have been raised that U.S. tariffs could increase the price of physical video game products. Photo by Phil Barker/Future Publishing via Getty Images.
Over the weekend, President Trump signed an order implementing tariffs on Canada, China, and Mexico, prompting retaliatory tariffs from Canada and Mexico. China's Ministry of Commerce announced it would file a lawsuit with the World Trade Organization. These tariffs are scheduled to take effect on Tuesday, though Trump has temporarily suspended the tariffs on Mexico for a month after a conversation with its president.
While the current tariffs target Canada, China, and Mexico, President Trump has also indicated that tariffs on the European Union are inevitable. Regarding Britain, Trump mentioned to reporters that "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."
Analysts are actively discussing the potential effects 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 scenario.
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, Super Joost newsletter author Joost van Dreunen also considered the impact of tariffs on the potential cost of Nintendo's new console, noting that "the broader economic environment, particularly potential tariff impacts from the incoming U.S. administration, could significantly influence consumer reception."
