Overview

• The first wave of President Trump's tariffs, including a blanket 10% on all imports and higher rates for countries like China (54%) and Vietnam (46%), begins April 5, 2025.
• The Entertainment Software Association (ESA) has stated that these tariffs will have a 'real and detrimental impact' on the video game industry, particularly gaming hardware.
• Compounded tariffs on components sourced from multiple countries are expected to significantly increase costs for consoles and other hardware.
• Companies like Nintendo and Sony are implementing mitigation strategies, such as stockpiling and adjusting pricing, to manage uncertainty caused by the tariffs.
• The ESA remains cautiously optimistic about potential negotiations for exemptions or reductions, though no agreement has been reached yet.