ESA issues warning as games industry could suffer amid Trump tariffs

President Donald Trump has announced new trade tariffs affecting multiple countries, including Mexico and Canada, which could impact various industries, including video games. 

In a statement first shared with Kotaku, the Entertainment Software Association (ESA) warned that these tariffs could cause "significant harm." Forbes later spotted a modified version of the ESA's original statement.

“Video games are one of the most popular and beloved forms of entertainment for Americans of all ages," the statement reads. “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.”

During his campaign, President Trump proposed tariffs of up to 60% on China and 10% on all other imports but later scaled back to a 10% tariff on goods from Mexico and Canada and 25% on Chinese imports. 

According to a CTA report via CNBC, a 60% tariff on China would significantly impact American consumers, potentially raising laptop and tablet prices by 45%, video game consoles by 40%, and smartphones by 26%, adding an average of $213 to smartphone prices.

A harmful impact 

Experts and trade groups, including the WTO chief, warn that Trump’s tariffs could trigger trade wars, slow global commerce, and raise consumer prices. 

The ESA also warns that tariffs could hurt the gaming industry, especially since prices are already high for many consumers. If tariffs affect key manufacturing locations for consoles and accessories, prices could rise quickly. 

However, the impact remains uncertain, and the industry is waiting to see how it unfolds. Retailers are also adjusting budgets in anticipation of higher costs, but consulting firms advise against drastic moves like relocating production or stockpiling inventory until policies are confirmed.

“We need to see the definition of what’s going to be tariffed and how much and when, and specifically which products,” said Jeff Gragg, managing partner at Columbus Consulting. “Until we get more specifics around it, overreacting can only put you in a dangerous position.”