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 urged the administration to engage with the private sector to mitigate potential damage to the video game industry.

In a recent statement 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 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 several 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 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 are scheduled to take effect on Tuesday, though President Trump has decided to pause the tariffs on Mexico for a month following discussions with the country's president.

Although the current tariffs target Canada, China, and Mexico, President Trump has indicated that tariffs would "definitely happen" with the European Union. Regarding Britain, Trump stated, "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 remarked (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."

Analysts have been discussing the potential impact of tariffs on the industry as the situation unfolds. On X, MST Financial senior analyst David Gibson commented that the China tariff would have "zero" impact on the Nintendo Switch 2 in the U.S., but 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 considered the impact of tariffs on the potential 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."