Now that Donald Trump is going to enter office once again, his proposed tariffs may shape the gaming industry across the US.
In his campaign, the 78-year-old politician spoke of demanding a baseline 60% tariff on exports by China—an action that will indeed lead to quick price hikes for gaming consoles such as PS5, Nintendo Switch, and other electronics that constitute modern gaming.
How Trump's Tariffs Could Influence Gaming Prices
This is what might happen under Trump's proposed tariffs: The US has a trade deficit with China. To that end, Trump's tariffs encourage domestic manufacturing. Because electronics production has been so dependent on China, this shift might be quite brutal with hikes in price, Gizmodo reports.
Several gaming products—for instance, laptops and next-generation consoles like the PS5 Pro and Nintendo Switch 2—would become much costlier. Laptops may hike by almost 50%, and the PS5 Pro may jump by nearly $1,000, which may make gamers rethink their upgrade decisions.
Why Electronics and Gaming Gear Are in the Crosshairs
The United States has long-term trade dependence on China, especially in the technology sector where China has largely been a huge manufacturing base for cheap electronics.
Since Trump intends to boost domestic manufacturing, imposing tariffs would increase the prices of imported technology, which manufacturing companies would then pass on to consumers in the form of additional charges.
Indeed, AutoZone CEO Philip Daniele testified recently that "the only ones who pay tariffs are American businesses," whom the companies charge for additional expenses in the form of higher prices.
Recently, the Consumer Technology Association published a study outlining the probable impact a 60% tariff might have on consumer electronics, including laptops, gaming consoles, and smartphones.
According to the CTA, prices for such products will rise dramatically, affecting consumers' ability to buy indispensable items within gaming products and high-end equipment.
Possible Price Hikes on Main Gaming Hardware Components
The CTA study indicates that the electronics from China will likely trigger a price increase across product lines.
"Across the board, the tariffs will cause significant price increases for the U.S. consumer," the study said.
Since this will most certainly affect the gaming segment, it goes like this:
- Laptops and tablets: Their costs are likely to rise by around 46%. This may dramatically affect laptop-loving gamers who use high-performance laptops.
- Smartphones: Prices are likely to increase by 26%, which may send mobile gamers' wishes crashing out.
- Video Game Consoles: A 40% increase may make the PS5 Pro close to $1,000. That is a pretty substantial jump for console gamers.
- High-Performance GPUs: Users would be very likely to see significant price increases for a $900 high-end GPU up to around $1,300, so high-end gaming computers would be less affordable.
The figures depict the deeper pocketing meaning of these tariffs towards the ordinary consumer, particularly in middle-class families.
How Tariffs Could Change the Gaming Market
Ed Brzytwa, CTA Vice President of International Trade, has pointed out that such tariffs could have devastating effects on consumers. Brzytwa underlines via Tom's Hardware that tariffs operate as "regressive taxes," hugely bearing down on poor Americans.
Firstly, tariffs would not help resurrect manufacturing in the United States; thus, electronics production would probably shift to countries like Vietnam, instead of coming back to American soil.
As experienced during Trump's first term, tariffs on Chinese goods were as high as 50%, though the tech industry managed to obtain some exceptions on a few lines of electronics.
If these exemptions do not hold this time, the U.S. gaming market will go through a huge shift as the tech companies adjust to the increased import costs.
Upgrade Your Gaming Setup ASAP
For those with upgrade plans for their PCs, new console purchases, or modifications in the gaming setup, it would be prudent to make the desired purchases before Trump's tariff plans eventually come into effect.
New prices on these essentials may very well make them several multiples of the current cost once the intended inauguration is observed. This means that you have to accomplish this before January 20, 2025.
Even GTA 6 fans are not spared by Trump's win, as according to them, this political curse could mean delays for the game that has been sitting in the shadows for many years.
