ESA Warns: Trump's Video Game Tariffs to Harm Everyday Americans Significantly

As U.S. President Donald Trump's controversial import tariffs take effect, the Entertainment Software Association (ESA) has called upon the administration to engage with the private sector to mitigate potential damage to the video game industry. In a statement provided to IGN, the ESA emphasized the need for dialogue "to find ways to sustain the economic growth supported by our sector."

"Video games are one of the most popular and beloved forms of entertainment for Americans of all ages. 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."

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

Concerns are growing that U.S. tariffs could increase the cost of physical video game products. Photo by Phil Barker/Future Publishing via Getty Images.

Over the weekend, President Trump signed an order implementing tariffs on Canada, China, and Mexico, prompting retaliatory tariffs from Canada and Mexico. China's Ministry of Commerce announced plans to file a lawsuit with the World Trade Organization. The tariffs are scheduled to take effect on Tuesday, although Trump has agreed to a one-month pause on tariffs against Mexico following a conversation with its president.

While the current tariffs target Canada, China, and Mexico, President Trump has indicated that tariffs on the European Union are imminent, stating they would "definitely happen." Regarding the UK, Trump remarked, "we'll see how things work out."

"The UK is way out of line. We'll see ... but the European Union is really out of line," said President Trump (via Reuters). "The UK is out of line, but I think that one can be worked out. But the European Union is an atrocity, what they've done."

As the situation develops, analysts are actively discussing the potential impacts of these tariffs on the video game industry. On X, MST Financial senior analyst David Gibson noted that the China tariff would have "zero" impact on the Nintendo Switch 2 in the U.S., but warned that tariffs on Vietnam could alter this outcome.

Now obviously if tariffs go onto Vietnam imports to the US then that changes the outcome. PS5 not so lucky but Sony might scale up non-China production to help solve the problem.

— David Gibson (@gibbogame) February 2, 2025

In a recent interview with IGN, Super Joost newsletter author Joost van Dreunen also highlighted the potential influence of tariffs on the cost of Nintendo's upcoming console, stating "the broader economic environment, particularly potential tariff impacts from the incoming U.S. administration, could significantly influence consumer reception."