Video Game Industry Group Predicts President Donald Trump's Tariffs To Have Big Impact After Advising Against Them

The Entertainment Software Agency, a video game trade and lobby organization, is predicting that President Donald Trump’s tariffs will have a big impact on the industry and will specifically impact the sale of hardware.

The Entertainment Software Association’s (ESA) members include Amazon, Bandai Namco, Capcom, Disney Interactive Studios, Electronic Arts, Epic Games, Konami, Microsoft, Netflix, Nexon, Nintendo, Riot Games, Sony Interactive Entertainment, Square Enix, Tencent Games, Ubisoft, Warner Bros. Games, Wizards of the Coast, Mattel, and Take-Two.

In a letter dated March 26th to the the United States Trade Representative Ambassador Jamieson Greer, the ESA along with other technology organizations and associations advised against the United States employing tariffs in order to create open and fair markets for U.S. exports.

It stated, “U.S. tariffs on imports of critical technology inputs and products would harm the very U.S. businesses the President seeks to boost and would risk undercutting long-term U.S. technology leadership.”

“Trading partners have already signaled the possibility of retaliatory measures targeting U.S. innovative products and services exports,” the letter warned.

Instead of tariffs, it offered the following solution, “Take a comprehensive approach that facilitates broad deployment of technology across the U.S. economy so that U.S. innovators, creators, manufacturers, farmers, ranchers, scientists, and consumers thrive.”

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Following the publication of this letter, President Donald Trump invoked the International Emergency Economic Powers Act to enact a 10% tariff on all countries” that will “take effect on April 5, 2025.”

The President also noted that he “will impose an individualized reciprocal higher tariff on the countries with which the United States has the largest trade deficits” and that “these tariffs will remain in effect until such a time as President Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated.”

According to CNBC, Trump and his administration imposed a 34% tariff on China, a 46% tariff on Vietnam, a 49% tariff on Cambodia, a 32% tariff on Taiwan, a 25% tariff on South Korea, and 24% tariffs on Japan and Malaysia.

The United States Trade Representative responded to these tariffs stating, “The current lack of trade reciprocity, demonstrated by our chronic trade deficit, has weakened our economic and national security. After only 72 days in office, President Trump has prioritized swift action to bring reciprocity to our trade relations and reduce the trade deficit by leveling the playing field for American workers and manufacturers, reshoring American jobs, expanding our domestic manufacturing base, and ensuring our defense-industrial base is not dependent on foreign adversaries—all leading to stronger economic and national security.”

Following the announcement of the tariffs, Stephen Totilo at Game File reported that the Entertainment Software Association informed him that “gaming hardware, including consoles, are likely to take a bi[g] hit due to the new levies.”

Aubrey Quinn, the Senior Vice President of the Entertainment Software Association told him, “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.”

She’s alluding to the fact that a lot of video game hardware is made in multiple countries and can cross into multiple countries before it is completed and sold to retailers.

Despite claiming that the tariffs will hit console manufacturing hard, Quinn is “optimistic that there will be a solution that doesn’t damage U.S. industries, ours included, and doesn’t hurt U.S. consumers.”

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Nintendo announced it is delaying pre-orders for its Nintendo Switch 2 in order to assess the impact the tariffs might have.

A spokesman told Polygon, “Pre-orders for Nintendo Switch 2 in the U.S. will not start April 9, 2025 in order to assess the potential impact of tariffs and evolving market conditions. Nintendo will update timing at a later date. The launch date of June 5, 2025 is unchanged.”

What do you make of this prediction from the ESA and its aversion to President Donald Trump’s tariffs?

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