Microsoft, Nintendo, and Sony sound the alarm about the 'enormous impact' of Trump’s proposed China tariffs


Microsoft, Nintendo, and Sony have united in hopes of defeating the final boss that is President Trump's proposed China tariffs.
In a joint letter submitted to the Office of the United States Trade Representative's general counsel, the video game companies speak in opposition to Trump's proposed tariffs, which they say would have an "enormous impact" and bring about "undue economic harm." Trump previously imposed a 25 percent tariff on $250 billion of Chinese imports and has threatened to impose tariffs on $300 billion more, per The New York Times. Video game consoles would be affected, and 96 percent of the consoles imported into the United States last year were manufactured in China, the letter says.
The companies say that these tariffs would "add significant costs that would depress sales of video game consoles" and that a price increase of 25 percent "will likely put a new video game console out of reach for many American families who we expect to be in the market for a console this holiday season." Consumers will pay $840 million more than they normally would, the letter says, adding that console sales going down would "unquestionably" lead to a decline in video game sales as well.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
On that note, the companies warn that the tariffs will also harm game developers, accessory companies, and retailers and that, therefore, the "ripple effect of harm could be dramatic."
Nintendo, Microsoft and Sony have asked the United States to remove video game consoles from its list of products that would be affected by the tariffs. Trump is set to meet with Chinese President Xi Jinping and hold trade talks this weekend, and he said on Wednesday that should the trade talks fail, "we'll do less business with them."
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brendan worked as a culture writer at The Week from 2018 to 2023, covering the entertainment industry, including film reviews, television recaps, awards season, the box office, major movie franchises and Hollywood gossip. He has written about film and television for outlets including Bloody Disgusting, Showbiz Cheat Sheet, Heavy and The Celebrity Cafe.
-
What are 'freakosystems' and how are they affecting the planet?
The explainer Ecosystems are changing permanently
-
'The question is what it does for the ecosystem'
Instant Opinion Opinion, comment and editorials of the day
-
August 26 editorial cartoons
Cartoons Tuesday’s political cartoons include a simple guide to gerrymandering, a MAGA-approved Cracker Barrel logo, and an FBI raid at John Bolton's house
-
New York court tosses Trump's $500M fraud fine
Speed Read A divided appeals court threw out a hefty penalty against President Trump for fraudulently inflating his wealth
-
Trump said to seek government stake in Intel
Speed Read The president and Intel CEO Lip-Bu Tan reportedly discussed the proposal at a recent meeting
-
US to take 15% cut of AI chip sales to China
Speed Read Nvidia and AMD will pay the Trump administration 15% of their revenue from selling artificial intelligence chips to China
-
NFL gets ESPN stake in deal with Disney
Speed Read The deal gives the NFL a 10% stake in Disney's ESPN sports empire and gives ESPN ownership of NFL Network
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year