As U.S. President Donald Trump's controversial import tariffs take effect, the Entertainment Software Association (ESA) has urged the administration to consult with the private sector to mitigate potential harm to the video game industry.
In a statement 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 popularity of video games among Americans 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 major video game companies such as Microsoft, Nintendo, Sony Interactive Entertainment, Square Enix, Ubisoft, Epic Games, and Electronic Arts.
Over the weekend, President Trump signed an order imposing tariffs on Canada, China, and Mexico, prompting retaliatory measures from Canada and Mexico. China's Ministry of Commerce announced plans to file a lawsuit with the World Trade Organization. The tariffs are scheduled to take effect on Tuesday, but Trump has agreed to pause the tariffs on Mexico for a month following discussions with the country's president.
Although currently focused on Canada, China, and Mexico, President Trump has indicated that tariffs on the European Union are imminent. Regarding Britain, Trump suggested that the situation could be resolved, stating, "The UK is way out of line. We'll see ... but the European Union is really out of line," as reported by 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 have been closely monitoring 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 warned that 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 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 discussed the broader economic implications, particularly the potential tariff impacts from the U.S. administration, which could significantly affect consumer reception of Nintendo's new console.
