With the prolonged trade war between the United States and China escalating further, the Trump government is now threatening to impose a 25% tariff on additional $ 300 billion of goods from the country, a move that will also affect the US Almost all Chinese exports. Faced with this threat, Nintendo, Microsoft, and Sony today wrote a letter urging the administration to exclude video game consoles from such tariff plans.
The seven-page letter, signed by the directors of the three main console manufacturers, argued that a tax on game console imports "hurt consumers, developers, retailers and console vendors of video games, jeopardizing thousands of high-quality US jobs and hindering innovation in our industry and beyond [1
More than 96% of US video game consoles are manufactured in China, the letter states, and relocate this manufacturing to another country would cause "significant disruptions to the supply chain and … the cost – even beyond the cost of the proposed one Tariffs – for products that are already manufactured under conditions of tight margins. " Other technological innovations introduced in the past by the console gaming industry, such as the Xbox Adaptive Controller, Wii Motion Control, and the PlayStation VR.
Console manufacturers are far from pleading for this far-reaching tariff threat alone. Hundreds of companies said at trade hearings this month that tariffs would directly lead to price increases for US consumers, which would be terrible for businesses and the entire economy. While previous rounds of Chinese tariffs targeted certain manufacturing sectors to limit the direct impact on US consumers, the new customs threats cover virtually all Chinese-made goods, from footwear and jewelery to toys and electronics.
The trade agreement between China and the United States fell apart last month. Following a meeting between Trump and Chinese President Xi Jinping at the G20 summit in Osaka, Japan later this week, the government has announced a final decision on possible tariffs.