As reported last month, Trump's decision to impose up to 25% extra tariffs on Chinese imported goods could impact the video game consoles industry as they were included in the initial document draft proposed by the Office of the United States Trade Representative.
We mentioned in the previous article that affected parties had the chance to submit their own comments on this action by June 17th and surely enough, Microsoft, Sony and Nintendo jointly wrote a letter asking for video game consoles to be exempt from said tariffs.
At the outset, we note that we support the Entertainment Software Association’s (“ESA”)
submission requesting removal of a broader range of videogaming-related Harmonized Tariff Schedule of the United States (“HTSUS”) subheadings from the final tariff list. As leading video game console manufacturers, we submit this separate submission to highlight the enormous impact and undue economic harm that proposed tariffs on video game consoles would have on the entire video game ecosystem.In particular, tariffs on video game consoles would:
• Injure consumers, video game developers, retailers and console manufacturers;
• Put thousands of high-value, rewarding U.S. jobs at risk; and
• Stifle innovation in our industry and beyond.While we appreciate the Administration’s efforts to protect U.S. intellectual property and
preserve U.S. high-tech leadership, the disproportionate harm caused by these tariffs to U.S. consumers and businesses will undermine—not advance—these goals. Accordingly, we respectfully request that the Administration remove HTSUS subheading 9504.50.00, covering video game consoles, from the final list of tariffs, and thus refrain from applying tariffs on these products.
In the letter, Microsoft, Sony and Nintendo highlighted the following five good reasons to do so:
- Our Companies and the Video Game Industry Drive U.S. Economic Growth and
Technological Innovation - Video Game Consoles Are Highly Specialized Products With Complex Supply Chains
- Beyond Video Game Console Makers, U.S. Consumers, and U.S. Retailers, the Proposed
Tariffs Would Asymmetrically Harm Small and Medium-Sized Software Developers Across
America - Tariffs Could Hinder or Delay Technological Innovation in a Broad Range of Applications
Beyond Gaming - Imposing Tariffs on Video Game Consoles Would Not Be “Practicable or Effective to
Obtain the Elimination” of China’s Problematic IP Practices
Of course, that doesn't mean they'll get their wish. We'll keep you updated on what the Trump administration chooses to do going forward in this matter.
About the author: With over two decades of experience in gaming journalism, Alessio Palumbo has led the gaming vertical at Wccftech since August 2015. He started working at a young age for Italian websites like Everyeye.it, Gamestar.it, Nextgame.it, and Multiplayer.it before kickstarting the indie English-language publication Worlds Factory as its founder and Editor in Chief. In the last decade, he has coordinated the overall output of Wccftech's gaming section, managed PR relations, assigned reviews, produced daily news coverage, edited gaming content as needed, and delivered game reviews. Arguably, his trademark content is the long series of exclusive developer interviews that have been cited by Wikipedia and by the biggest news media and gaming publications. His passion for technology also makes him knowledgeable when it comes to gaming hardware and tech. His favorite genres include RPGs, MMORPGs, and action/adventure games.
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