Recently, the Office of the United States Trade Representative published a list of the latest import taxes. It just so happens that the following has made it to the list:
-"Radio remote control apparatus for video game consoles"
-"Infared video game controllers"
-"Video game consoles and machines, other than those of heading 9504.30"
-"Coin- or token-operated games for arcade, table or parlor (o/than bowling alley equipment) nesoi and parts and accessories
The tariff amount? A whopping 25 percent. For now, we are unsure as to where this will lead to in regards to the bottom line. After all all three major gaming companies - Nintendo, Microsoft, and Sony - manufacture plenty of products in China.
Will it possibly harm current console sales for consumers or are companies going to "eat" the taxes? Perhaps these tariffs will even be reflected in future console prices and arcade machines, but for now, we are unsure as to what will happen.
What we do know is that The Entertainment Software Association has expressed its disapproval over this trade move:
"The video game industry boasts a trade surplus for the American economy. Tariffs will hurt the American economy, its industries, and its consumers."
For now, the tariffs are in writing, but they have not been made official. However, they could become official beginning as soon as June 24. Hearings will begin June 17, just in time for E3 to end. Stay tuned as we keep an eye on what's to come.