Gamers might soon be paying more for their favourite consoles and games after new tariffs were introduced by the US government.
This week's headlines have been filled with President Trump's new tariffs and some consumers are worried about how they will affect video games, consoles and gaming hardware.
Tariffs are taxes on goods imported from other countries. The idea is to make foreign-made products more expensive, encouraging people to buy locally-made goods instead.
However, that cost doesn’t fall on foreign countries, it’s actually paid by the companies importing the goods. So, to make up for those costs, companies typically raise their prices, meaning consumers end up paying more.
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The Entertainment Software Association (ESA), which represents the video game industry, has warned that tariffs on video game devices and related products could cause significant harm to Americans and the industry.
In a statement first published by Kotaku, the ESA asked President Trump and the US government to consult with the private sector on the tariffs. This way could find better solutions without hurting consumers or businesses.
“Video games are one of the most popular and beloved forms of entertainment for Americans of all ages," the ESA statement read.
"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."
It continued: "We look forward to working with the Administration and Congress to find ways to sustain the economic growth supported by our sector.”
While digital games won’t be impacted, physical products like consoles and game discs will likely see price hikes because they’re mostly manufactured overseas. Meanwhile, it’s still unclear how the tariffs will affect the PlayStation 5, Xbox Series X|S, computer graphics cards, and the upcoming Nintendo Switch 2.
As of Saturday just gone (1 February), tariffs have been placed on China, Mexico, and Canada.
As a result, goods from Mexico and Canada will face 25% tariffs, while imports from China will be taxed at 10%, as per President Trump.
Canadian energy, including oil, natural gas and electricity, will also be facing a 10% tax rate.
When asked about the UK, President Trump said Britain was 'out of line' on trade but believed the situation could be 'worked out' without tariffs.
On the back of his changes, Trump said: "We may have short term some little pain, and people understand that. But long term, the United States has been ripped off by virtually every country in the world."