Trump's tariffs send shockwaves through the video game industry

[Alfonso Maruccia]

What a boom: Donald Trump launched a metaphorical nuclear bomb on the global economy on April 2 during his so-called "Liberation Day" speech. Entire industries are now grappling with the fallout. According to the Entertainment Software Association (ESA), the U.S. video game industry could suffer unprecedented consequences.

The video game sector must brace for impact following the announcement of Trump's new tariffs earlier this week. According to Aubrey Quinn, senior vice president of the ESA, these tariffs will significantly disrupt game development, as well as hardware and software production.

Gaming hardware such as dedicated home consoles will experience a particularly big fallout, Quinn said. These devices are primarily manufactured in countries targeted by the tariffs. Even the parts required on the assembly line, which are typically sourced from various local and international markets, could face additional levies, further inflating the final cost of production.

"Any one product that a consumer would buy is likely to be subject to many of the tariffs announced, all compounded on top of one another," Quinn stated. Then there's the issue of retaliation, with many nations and the European Union threatening to respond with their own tariffs. According to the ESA, Trump's so-called Liberation Day may just be the beginning of a long and uncertain road.

Also see: Every first-party Nintendo Switch 2 game will cost $70 or $80 – even the old ones

Tech companies like Apple and Nintendo attempted to mitigate the impact of the tariffs by relocating manufacturing operations from China to alternative, often cheaper countries like Vietnam. But Trump caught up with them, too, announcing a 46 percent tariff on Vietnamese imports on April 2.

As a result, American consumers can expect to pay around $450 for the upcoming Switch 2 console, while Japanese gamers – unaffected by U.S. tariffs – will pay only $343 for the same device. Even the price of new games for the recently announced console is expected to rise, with Nintendo citing tariffs among several contributing factors.

Quinn also emphasized that bringing manufacturing back to the U.S. – presumably the Trump administration's ultimate goal – won't happen overnight, if at all.

The supply chain is an incredibly complex system, and every company must consider what's best for its consumers, business, and employees. The ESA hopes all parties involved can ultimately reach a solution that doesn't harm the gaming industry or American consumers.

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Trump's tariffs send shockwaves through the video game industry

 

[scavengerspc]

Well we saw that happen in the first term, I really can't see this would surprise anyone
seeing that the current tariffs are much wider and are more consumer oriented.
At least now, nobody can say they weren't warned.

 

[Kirby1]

JP Morgan now says there is a 60% chance of a global recession. This will be known as the Trump recession, or even the Trump depression.

What's particularly funny (in a sad way because of how stupid this all is), take Vietnam. The US imports a lot from Vietnam and the trade deficit is huge, so the tariff rate on Vietnam is above 90%. But Vietnam doesn't have a tariff on US imports at all so all this will do is raise prices since there is nothing Vietnam can do to appease Trump. Since these tariffs are universal and unevenly applied, countries that have no barriers to trade with the US at all are being massively punished, and as with all tariffs the pain will be felt on both sides.

Republicans fundamentally do not understand that the main export of the US is skilled labor and knowledge. Because less educated people are more likely to vote red, republican leaders have been on a campaign to depreciate the American education system for decades. Their goals of maintaining an uneducated populus and thus more voters is directly at odds with the US economy's main source of income.

The US has many economic issues, but the best way to stay on track and even grow the economy is to invest in the US's main export more by making education more accessible so we have more skilled labor and knowledge to export. But that's not what's happening, we're doing the opposite while shooting ourselves in the foot in other ways.

If things do not get course corrected, this could very well be the beginning of the end of American Exceptionalism.

 

[Achaios]

So Trump is the devil now, but when China was bullying Taiwan everything was cool.

Finally there's a US President that's layin' the hurt on the Communists.

Reminder, for decades the Chinese despised the US and thought that the US and its people were weak and decadent. Even worse they actively undermined the US and NATO.

 

[Kirby1]

So Trump is the devil now, but when China was bullying Taiwan everything was cool.

Finally there's a US President that's layin' the hurt on the Communists.

Reminder, for decades the Chinese despised the US and thought that the US and its people were weak and decadent. Even worse they actively undermined the US and NATO.

Classic Maga tactic, pretend things are one way or the other. That if Trump is bad, China must be good or vice versa. They are both bad, it's not one or the other you nitwit.

US and Global economy is crashing. Trump is hurting everyone, not just Communists. You don't create value by destroying wealth.

 

[GABulldog]

The crying over tariffs is getting so bad we'll need to build an Ark because the next great flood will appear.

 

[Kirby1]

The crying over tariffs is getting so bad we'll need to build an Ark because the next great flood will appear.

You don't have to cry over the tariffs themselves. People can cry about all the money they are losing on basically any investments they have, or the higher prices they will pay on everything, or that the economy is going through covid level economic destruction, but instead of natural causes this is a choice.

But at least some a small amount of low paying factory jobs might come back to the US. Are you looking forward to working in a deregulated factory for minimum wage?

 

[MarcusNumb]

It's funny and sad, at the same time, to read comments these days to see how divided we are, even before a very posible recession which will deeply hurt everybody.

I personally think and hope that this is just a political move from Trump to force everyone to sit down with him and renegotiate trading terms. Maybe I'm just too naive but a total multinational trading wars and then a recession will literally be a disaster, and its consequences will take us decades to recover.

 

[Kirby1]

It's funny and sad, at the same time, to read comments these days to see how divided we are, even before a very posible recession which will deeply hurt everybody.

I personally think and hope that this is just a political move from Trump to force everyone to sit down with him and renegotiate trading terms. Maybe I'm just too naive but a total multinational trading wars and then a recession will literally be a disaster, and its consequences will take us decades to recover.

How do you renegotiate terms with a country that already has zero trading barriers with the US?

We are divided because there are people who drink the cool-aid and believe whatever they want to be true instead of what is actually true, and people who don't. there is no middle ground between truth and lies.

 

[captaincranky]

So Trump is the devil now, but when China was bullying Taiwan everything was cool.

Finally there's a US President that's layin' the hurt on the Communists.

Reminder, for decades the Chinese despised the US and thought that the US and its people were weak and decadent. Even worse they actively undermined the US and NATO.

OK. So we started off with the topic that video game studios are already whimpering about the tariffs. More than likely you'll be bellyaching your brains out, when every new game costs $100.00, and that fabled RTX-5090 lists for about $3,000, before scalping sets in
Be aware, nobody but Americans are going to pay these tariffs. In other words, smarten up a bit, since the government will pocket the tariffs, straight out of your paychecks, not from foreign manufacturer's.

The trimpanzee is putting the hurt on you. He's delusional to the point of absurdity. You're delusional as well, if you think that manufacturers are going to rush in and build factories overnight. By the time that could happen, the orange Looney-toon, (hopefully), will be in his grave.

Well, to tell the truth, the Chinese at one time viewed the US as its savior. Since we helped them drive the Japanese occupiers out of their country during WWII.

And BTW, we are weak and extremely decadent, almost to the point of self extinction. One has to wonder if any commercials for face creams, hair products, and 2 thousand dollar a month weight loss drugs are running in Gaza these days. A inciteful question would be, "if you weren't decadent, how did you get that fat to begin with"?

240,000 "new jobs" were created last month. Previous estimates were only 160.000. And the MAGATs will cheer, "look how great the trimpster is doing".

The only problem with that is, there were 235,000 new claims for unemployment filed as well. I suppose you'll ignore the fact that in reality, only 5,000 jobs were created. Do the math.

 

[pelopidas]

The thing about reciprocal tariffs is that any country that does not want them imposed by us can stop imposing them on us. Drop your import tariffs on products from the USA and then you won’t have tariffs on your exports.

 

[Kirby1]

The thing about reciprocal tariffs is that any country that does not want them imposed by us can stop imposing them on us. Drop your import tariffs on products from the USA and then you won’t have tariffs on your exports.

How does Vietnam, (over 90% tariff imposed by Trump) a nation with a huge trade deficit with the US but zero trade barriers (no tariffs) stop imposing the trade restrictions that they never had in the first place?

This is the case of a lot of nations; they never had any trade barriers with us, and Trump is punishing them and us anyway.

FFS I hate that all the people who come out to defend Trump are so uniformed on EVERTHING. It is so tedious to have to educate and argue with these people at the same time. GAIN SOME GRASP ON REALITY BEFORE YOU DEBATE IT.

 

[Lew Zealand]

GAIN SOME GRASP ON REALITY BEFORE YOU DEBATE IT.

Sir.

SIR!

This is the Internet. Any ignorant fool can post to an open comment section whatever blather they want. Trying to impose some kind of quality standard is pissing into the wind.

 

[godrilla]

While some are foaming at the mouth no matter where if the market goes up or down many are using this as a buying opportunity.
FYI VIX index all previous peaks.

 

[pelopidas]

How does Vietnam, (over 90% tariff imposed by Trump) a nation with a huge trade deficit with the US but zero trade barriers (no tariffs) stop imposing the trade restrictions that they never had in the first place?

This is the case of a lot of nations; they never had any trade barriers with us, and Trump is punishing them and us anyway.

FFS I hate that all the people who come out to defend Trump are so uniformed on EVERTHING. It is so tedious to have to educate and argue with these people at the same time. GAIN SOME GRASP ON REALITY BEFORE YOU DEBATE IT.

It is good to be informed. Some info that is good to know is that Vietnam has an average tariff of 9.5% plus another 10% vat tax. That is more than zero. Another good point is that the tariffs imposed are 46% which is basically half of what you said. So let’s add precision to our debates and not hyperbole. But for me personally it isn’t about where things start with Trump but where they end and if you don’t see that everything he does is for leverage in negotiations then you are missing the point. So let’s see what Vietnam and all the other countries bring to the table now.

 

[Beerfloat]

The thing about reciprocal tariffs is that any country that does not want them imposed by us can stop imposing them on us. Drop your import tariffs on products from the USA and then you won’t have tariffs on your exports.

Trump's chart is a bigger lie than hurricane Sharpie. It does not actually list tariffs placed on us at all. The numbers are pure fantasy based on our trade balance with said countries.

Countries that sell us agricultural products or sneakers but can't really afford most of our end products and services will be listed as having high tariffs, when they have 0. It's a stupid, filthy lie.

 

[Kirby1]

It is good to be informed. Some info that is good to know is that Vietnam has an average tariff of 9.5% plus another 10% vat tax. That is more than zero. Another good point is that the tariffs imposed are 46% which is basically half of what you said. So let’s add precision to our debates and not hyperbole. But for me personally it isn’t about where things start with Trump but where they end and if you don’t see that everything he does is for leverage in negotiations then you are missing the point. So let’s see what Vietnam and all the other countries bring to the table now.

The actual trade weighted average tariff rate for Vietnam is approximately 5.1%. Source: https://www.frasersvn.com/legal-upd...tes-implications-and-strategic-considerations

5.1% is basically nothing, certainly not even in the same world as the ~90% tariff Trump is imposing on Vietnam. I stand corrected that the Vietnams tariff rate is not zero, but it's so low that it might as well be.

Its uncommon for a nation that does a lot of trade to have no tariffs at all on imports, but it's usually pretty low.

Sure, maybe Trumps logic is to gain leverage. The fact that he has a very basic plan in mind doesn't mean it's a good one. When you take a nation like Vietnam that already has very favorable trade policies, there is nothing to gain that justifies what is happening.

 

[Achaios]

The way things are going, our disagreements notwithstanding, I think we are headed to war (US vs China).

It's been a long way coming and I think the disastrous US policy of eliminating production in the US and shifting it to China, is to blame.

Trump merely inherited the errors of four decades or more of US administrations. (GOP) President Richard M. Nixon, let us not forget, was responsible for the 1st US tactical withdrawal vs China.

Apart from Taiwan, America is bound to defend the Philippines. China has been systematically bullying and ridiculing the Philippine Armed Forces for decades.

For some reason, I found myself thinking today of the shoulder patch of the (US Army) 23rd Americal Division, the Southern Cross, present on both AUS & NZ flags.

I hope we can avoid bloodshed.

 

[Dimitriid]

This is the Internet. Any ignorant fool can post to an open comment section whatever blather they want. Trying to impose some kind of quality standard is pissing into the wind.

No: You do not need to allow misinformation, lies and propaganda to run rampant just because it's the internet: This discussion section right here is an example for why there is no coming back for the US: the moderation should just ban all Trump supporters on sight, immediately and without recourse. The site is basically unusable because no serious discussion can happen without the lunatics ruining it but also because the site owners are either Trump supporters themselves or so utterly incapable of growing a back bone and fighting back that they are functionally the same as Trump supporters by enabling them.

As I said, indicative in small part of the problem with the US: nobody is willing to accept they can't reason with their neighbors, their bosses, their family members, etc. And think they can reason with fundamentally unreasonable people when there's basically no more time to avoid collapse: Nobody is willing to do what they must at this point.

 

[RudyBob]

Suffer the fools

 

[daffy duck]

So Trump is the devil now, but when China was bullying Taiwan everything was cool.

Finally there's a US President that's layin' the hurt on the Communists.

Reminder, for decades the Chinese despised the US and thought that the US and its people were weak and decadent. Even worse they actively undermined the US and NATO.

ROFLMAO


OMG the delusion is strong with this one.

Did you read that on one of Lara Loomers or Steve Bannon's tweets?

 

[nismo91]

I'm from Indonesia. we just got slapped with 32% tariff just shy below China's 34%.

I know a couple of businesses that exports fishes to the US. anything from tuna, sardines to salmon which were not farmed locally. basically due to our cheap labors it's cheaper to ship out, deskin and debone fishes in Indonesia instead of process them wherever they are farmed.

let's see if people will continue buying our fish after the tariffs. all I can see are companies either closing shops or downsizing or relocating to other country if the demands aren't there. I guess the unemployment rates are gonna get worse.

 

[Squid Surprise]

I do love this paragraph...

As a result, American consumers can expect to pay around $450 for the upcoming Switch 2 console, while Japanese gamers – unaffected by U.S. tariffs – will pay only $343 for the same device. Even the price of new games for the recently announced console is expected to rise, with Nintendo citing tariffs among several contributing factors.

Do you really think Nintendo didn't already have that price set - long before the tariffs were imposed? Not to mention the prices of their games - which were going to be $80 regardless...

One thing companies can enjoy about the tariffs: gives them the excuse to raise their prices...

 

[Kashim]

So Trump is the devil now, but when China was bullying Taiwan everything was cool.

Finally there's a US President that's layin' the hurt on the Communists.

Reminder, for decades the Chinese despised the US and thought that the US and its people were weak and decadent. Even worse they actively undermined the US and NATO.

Ok, so you have a problem with China and the solution is to punish the ENTIRE WORLD? Communist this, and communist that, but what about all the other countries that have nothing to do with China or communism? What has Canada done? This nonsense about fentanyl coming in from Canada is complete nonsense and just an excuse to put a tariff in place. Fun fact: 99.8% of fentanyl coming into the US comes through the Mexican border and the other 0.2% comes through Canada.

All this nonsense about every country ripping off the US for decades according to the Orange Turd is also complete nonsense. America is the richest country in the world and certainly didn't get there by letting the entire world take advantage of it. If anything the opposite is true, America has been taking advantage of everyone since WWII ended.

I hope the entire American economy collapses, and even then you MAGA-tards will find a way to blame this on Obama or Biden. It's about damn time for you fat Americans to feel what it's like to be poor and a nice taste of scarcity. Maybe then you'll stop whining and moaning about everything, yeah, fat chance.

 

[candle86]

How does Vietnam, (over 90% tariff imposed by Trump) a nation with a huge trade deficit with the US but zero trade barriers (no tariffs) stop imposing the trade restrictions that they never had in the first place?

This is the case of a lot of nations; they never had any trade barriers with us, and Trump is punishing them and us anyway.

FFS I hate that all the people who come out to defend Trump are so uniformed on EVERTHING. It is so tedious to have to educate and argue with these people at the same time. GAIN SOME GRASP ON REALITY BEFORE YOU DEBATE IT.

https://www.reuters.com/markets/asi...y-says-regrets-us-tariff-decision-2025-04-04/

Maybe you should read, why would Vietnam be discussing removing import duties if there are none?