The console providers can breathe a sigh of relief. Because it has now been announced that gaming consoles such as the Playstation 4, Xbox One, and Nintendo Switch will not be affected by the tariffs that the Trump administration is planning in the trade dispute with China, at least for now. The joint protest from Sony, Microsoft, and Nintendo has apparently had an effect.
What tariffs are involved? Currently, there is a trade dispute between the USA and China. The administration of US President Trump plans to impose tariffs on products imported from China to the USA.
This should also include gaming consoles like the PS4, Nintendo Switch, and Xbox One. Because they are largely produced in southern China and imported to the USA.
Therefore, gamers fear that the prices for consoles will rise. Also regarding the upcoming console generation like the PS5 and Project Scarlett, this would be problematic. Because the next consoles are also likely to be manufactured in southern China.
For now, no tariffs
What were the reactions to this? There was a complaint from Sony, Nintendo, and Microsoft. At the end of June 2019, they made a joint submission to the US Department of Commerce, requesting that video game consoles be exempted from the tariffs.
According to the companies, it would be impossible to relocate the production of the consoles as the infrastructure has been built over many years.
The tariffs would have an impact on the entire gaming industry worldwide. Many jobs would be at risk.
Would this also affect us? Whether the console manufacturers would pass on the additional costs worldwide or only for the USA is unclear. According to the statement from Nintendo, Microsoft, and Sony, the effects should be felt worldwide.
It is likely that the prices of gaming consoles would rise everywhere.
What does the situation look like now? As the Trump administration has now announced, some products will temporarily be removed from the list. This includes consoles. They will not be subject to a 10 percent import tax – at least only until December 15.
In the announcement, it states that “the tariff for certain items should be postponed to December 15. The products in this group include, for example, mobile phones, laptops, video game consoles, and some toys, computer monitors, and certain footwear and clothing.”
It is not over yet
Does this mean a sigh of relief? For now, no one needs to fear that the prices of gaming consoles will rise. However, what it looks like after December 15 remains open.
Will the tariffs on gaming consoles be introduced later? Then the consoles could become more expensive next year, which would particularly affect the new generation.
We now have to wait until December and see how the US government decides regarding the tariffs by then.
