PCs and smartphones will avoid new US tariffs, but gaming consoles are unlucky to be on the list of exemptions
The US government has decided not to include personal computers and mobile phones in the list of goods subject to new import tariffs. However, game consoles, unfortunately, were not included in this exception. This means that Sony, Microsoft, and Nintendo will face additional costs for selling their devices in the United States (at least for the time being).
Here's What We Know
It is worth noting that the announced exceptions still cover components used in the production of game consoles. It is unclear whether the absence of consoles in the list was a deliberate step or just an accidental omission.
A small consolation for Nintendo is that solid-state non-volatile drives are also exempt from the tariffs, which includes game cartridges for the Nintendo Switch.
The US government has announced a 10% tariff on most goods imported into the country from all countries, with the exception of China, which already has a much higher duty of 125%. Initially, it was planned to impose much stiffer tariffs on many countries other than China, but these measures were suspended for a 90-day period. However, plans to resume them remain in place, and various governments are negotiating with the US to prevent such a development and even to completely cancel the current tariffs.
At the same time, the 20% tariff imposed earlier this year on all Chinese goods remains in force.
At this point, console manufacturers are expected to try to avoid passing on the increased costs to consumers. However, if tougher measures come into effect, the situation is likely to change. The majority of gaming hardware (including controllers) is produced in Asian countries such as China and Vietnam, which are the most vulnerable to increased tariffs.
For example, much of the production of the Nintendo Switch is concentrated in Vietnam, which was initially subject to a 46% tariff before the 90-day pause. As a result, Nintendo has already postponed pre-orders for its upcoming Nintendo Switch 2 console in the US, which is scheduled for release on 5 June.
For now, all that remains is to watch all this chaos.
Source: Game Business
