Trump's Tariffs on Video Games Would Cause 'Significant Harm' to 'Everyday Americans,' ESA Warns

The Entertainment Software Association (ESA) urges the Trump administration to collaborate with the private sector to mitigate potential harm to the video game industry resulting from the president's controversial import tariffs.

In a statement to IGN, the ESA stressed the need for dialogue with the private sector "to ensure continued economic growth within our industry." The statement highlighted the widespread popularity of video games and warned that tariffs on gaming devices and related products would negatively affect millions of Americans and damage the industry's substantial contribution to the U.S. economy. The ESA expressed its willingness to work with the administration and Congress to achieve this goal.

The ESA represents major video game companies, including Microsoft, Nintendo, Sony Interactive Entertainment, Square Enix, Ubisoft, Epic Games, and Electronic Arts.

President Trump recently signed an order imposing tariffs on Canada, China, and Mexico, prompting retaliatory tariffs from Canada and Mexico, and a World Trade Organization lawsuit from China. While initially scheduled to take effect on Tuesday, Trump announced a one-month suspension of tariffs on Mexico following a discussion with the Mexican president.

Although currently focused on Canada, China, and Mexico, President Trump has indicated that tariffs on the European Union are "definitely happening," and expressed uncertainty regarding the UK, stating that the UK is "way out of line" and the European Union's actions are "an atrocity."

Industry analysts are assessing the potential impact. On X, David Gibson, senior analyst at MST Financial, suggested that China tariffs would minimally affect the Nintendo Switch 2 in the U.S., but tariffs on Vietnam could alter this. He also noted that the PS5 might be more vulnerable, although Sony could potentially mitigate this by increasing non-China production.

Joost van Dreunen, author of the Super Joost newsletter, in a recent IGN interview, discussed the potential impact of tariffs on the price of Nintendo's new console, suggesting that the overall economic climate, including potential tariff effects, could significantly influence consumer response.