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

As U.S. President Donald Trump's controversial import tariffs come into 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 an updated statement 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 numerous major video game companies, including Microsoft, Nintendo, Sony Interactive Entertainment, Square Enix, Ubisoft, Epic Games, and Electronic Arts.

Over the weekend, President Trump signed an order imposing tariffs on Canada, China, and Mexico. This action 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 are scheduled to take effect on Tuesday, but President Trump has decided to pause the tariffs on Mexico for a month following a conversation with the country's president.

Although the tariffs are currently directed at Canada, China, and Mexico, President Trump has also indicated that tariffs on the European Union are inevitable. Regarding the UK, Trump told reporters, "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," President Trump stated, as reported by 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."

Analysts have been closely monitoring the potential impact of these tariffs on the 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 tariffs on Vietnam could alter that scenario.

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 discussed the potential effect of tariffs on the cost of Nintendo's new console, stating, "the broader economic environment, particularly potential tariff impacts from the incoming U.S. administration, could significantly influence consumer reception."