Trump’s Trade War with China Could Have a Negative Impact on the US Gaming Industry
A tariff proposal against China that was made by the Trump administration in May would raise the price of consoles in the US “by 21%, and the average video game console will cost about $56 more for U.S. consumers,” says a study that was commissioned by the Consumer Technology Association.
“U.S. trade data reveals that China accounts for nearly all (over 96 percent) of total [console] imports,” the study explained. “Imposition of the tariffs suggests that shifting this much Chinese production to any other source would be very difficult given the volume currently sourced from China. Therefore, U.S. prices of video game consoles would rise by nearly all of the value of the tariffs as supply would continue to need to be met by China.”
Last week, Microsoft, Sony, and Nintendo all came out against the tariff proposal that targeted gaming consoles imported from China and requested that the console tariff be removed from the proposal. The companies argued that the tariff would “injure” the gaming industry and its consumers, “stifle” innovation, and potentially put “thousands” of US jobs in the industry at risk.
However, President Trump has defended his tariffs against China as a necessary method to make trade between the two countries more fair for the US.
According to a report from The Verge, this tariff proposal for game consoles could go into effect “as soon as next week.”
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