President Trump Imposes Tariffs on Video Games
President Donald Trump followed through on his promise to impose tariffs on goods imported from Canada, Mexico, and China. These tariffs, totaling 25% on Canadian and Mexican goods and an additional 10% on Chinese goods, may have significant implications for the video game industry.
Industry analyst Mat Piscatella from Circana believes that physical video games subject to these tariffs may no longer be produced. Instead, publishers are expected to focus more on digital sales as a result. Piscatella has previously discussed the potential impact of these tariffs, highlighting that manufacturing game discs in the United States is not a feasible option due to declining physical sales.
During Trump’s first term, the video game industry successfully lobbied for an exemption from tariffs on Chinese goods. However, there was no such exemption in the latest round of tariffs. The Entertainment Software Association (ESA) issued a statement warning about the detrimental effects these tariffs could have on video game sales.
With tariffs typically passed down to consumers, American buyers are likely to see increased prices for both physical and digital games. Piscatella also suggests that these tariffs could lead to a rise in game prices and potentially contribute to an economic downturn, making it harder for players to afford new games.
