The United States and China have had a trade war for many months now. Tariffs on imported goods are the main weapons in this war. US President Donald Trump has been hinting at increased tariffs since last year.
The latest proposal would raise import taxes on nearly all Chinese goods to 25%. This extensive list of goods affected includes video game consoles. Video game companies are not happy, and ESA spoke out against these plans in the plans. Nintendo, Sony, and Microsoft are all joining forces to do the same. The tariffs mean that next gen consoles like PlayStation 5, Xbox Scarlett, and their games might cost mean.
The three big wigs have issued a joint letter to The Office of the United States Trade Representative. The letter requests that game consoles be removed from the tariff list due to “enormous impact and undue economic harm” the tariffs will cause.
Here’s an excerpt showing some of their concerns:
In particular, tariffs on video game consoles would:
Injure consumers, video game developers, retailers, and console manufacturers; put thousands of high-value, rewarding U.S. jobs at risk; and Stifle innovation in our industry and beyond.
While we appreciate the Administration’s efforts to protect U.S. intellectual property and preserve U.S. high-tech leadership, the disproportionate harm caused by these tariffs to U.S. consumers and businesses will undermine—not advance—these goals.
Accordingly, we respectfully request that the administration remove HTSUS subheading 9504.50.00, covering video game consoles, from the final list of tariffs, and thus refrain from applying tariffs on these products.
They oppose these tariffs, according to the letter, over 96% of video game consoles imported into the US were manufactured in China. And any shift in the supply chain will result in the costs being increased in a way they believe would “depress sales of video game consoles and the games” and will “hinder or delay technological innovation in a broad range of applications beyond gaming.” They use inventions in motion technology.