Semiconductors used to make game hardware will be caught up in the Trump administration's tariffs, which the ESA fears will harm the game industry's contribution to the US economy.
The Entertainment Software Association is warning that the incoming tariffs in place by the Trump administration will cause "significant harm" to video games and everyday Americans.
In a statement to Kotaku's Ethan Gach, the trade group said the tariffs could affect "Americans of all ages across the country." It later issued a modified statement that reiterated how the tariffs will "negatively impact hundreds of millions of Americans and would harm the industry’s significant contributions to the U.S. economy."
Over the weekend, President Trump signed an order to impose tariffs on goods coming from Mexico, China, and Canada, most of which are set to take place tomorow, February 4. Semiconductors, which are used to make game consoles (like the PlayStation 5 and Nintendo Switch 2) and accessory hardware, are included in those tariffs.
Several electronics companies have semiconductor factories in Mexico and China. The former's 25 percent tariff is currently paused, but China's 10 percent tax is still in effect at time of writing. Tariffs against China have previously threatened to affect the price of game consoles in the US, but did not manifest.
While the exact implications of President Trump's tariffs are presently unclear, hardware makers like Sony and Microsoft have released newer, often pricier iterations of their consoles. Sony in particular upped the price of its original PlayStation 5 system in several territories when semiconductors were in short supply a few years ago.
The ESA added that it would work with Congress and the Trump administration to "find ways to sustain the economic growth supported by our sector."
Video games and the industry at larger may be further affected by the Trump administration due to its connection to the Heritage Foundation's Project 2025. The document includes a wider-reaching definition of pornography (which could affect developers that feature transgender characters or include inclusive character creators), and lets agencies hold platform holders and digital storefronts liable for the content they store.
You May Also Like
