As U.S. President Donald Trump's controversial import tariffs come into effect, the Entertainment Software Association (ESA) has called upon the administration to engage with the private sector to mitigate potential damage to the video game industry. In a statement provided to IGN, the ESA emphasized the need for dialogue "to find ways to sustain the economic growth supported by our sector."
"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 stated.
The ESA represents a wide array of major video game companies, including Microsoft, Nintendo, Sony Interactive Entertainment, Square Enix, Ubisoft, Epic Games, and Electronic Arts.
There are concerns that U.S. tariffs could raise the price of physical video game products. 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 move prompted retaliatory tariffs from Canada and Mexico, while China's Ministry of Commerce announced plans to file a lawsuit with the World Trade Organization. Although the tariffs were scheduled to begin on Tuesday, President Trump decided to pause the tariffs on Mexico for a month following a conversation with the country's president.
While the current tariffs target Canada, China, and Mexico, President Trump has indicated that tariffs on the European Union are imminent. Regarding Britain, Trump remained non-committal, 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, 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."
Industry analysts have been closely monitoring the potential impact of these tariffs on the video game sector. On X, MST Financial senior analyst David Gibson remarked that the China tariff would have "zero" effect on the Nintendo Switch 2 in the U.S., but cautioned that tariffs on imports from Vietnam could alter this outlook.
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 also discussed the potential impact of tariffs on the cost of Nintendo's new console, noting "the broader economic environment, particularly potential tariff impacts from the incoming U.S. administration, could significantly influence consumer reception."
