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

As U.S. President Donald Trump's controversial import tariffs take effect, the Entertainment Software Association (ESA) has urged the administration to engage with the private sector to mitigate potential harm to the video game industry.

In a statement updated and provided to IGN, the ESA emphasized the need for dialogue with the private sector "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 industry giants like Microsoft, Nintendo, Sony Interactive Entertainment, Square Enix, Ubisoft, Epic Games, and Electronic Arts.

Concerns are mounting that U.S. tariffs could increase the price of physical video game products. Photo by Phil Barker/Future Publishing via Getty Images.Over the weekend, President Trump signed an order imposing tariffs on Canada, China, and Mexico. This move prompted retaliatory tariffs from Canada and Mexico, while China's Ministry of Commerce announced plans to file a lawsuit with the World Trade Organization. The tariffs were scheduled to take effect on Tuesday, but President Trump announced a one-month pause on tariffs targeting Mexico following a conversation with its president.

Although the current tariffs target Canada, China, and Mexico, President Trump has also indicated that tariffs on the European Union are inevitable. When questioned about Britain, Trump responded, "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," stated 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."

Industry analysts have been closely monitoring the potential impact of these tariffs. On X, MST Financial senior analyst David Gibson suggested that the China tariff would have "zero" effect on the Nintendo Switch 2 in the U.S., but warned that tariffs on Vietnam could alter this scenario.

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

— David Gibson (@gibbogame) February 2, 2025

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