So far, video games have avoided getting hit in the ongoing trade war between the US and China. That was about to change when the president announced a 10% tariff on video game consoles and other electronics. Now the Trump administration is delaying the import tax on electronics until December 15.
The United States Trade Representative, who is negotiating new trade terms with China at the direction of the president, announced the delay today. The 10% import tax was set to go into effect on September 1 but will now be pushed back to mid-December – just ten days before Christmas. The move avoids having the import tax hit consumers during the busiest day of the holiday shopping season, Black Friday.
Sony has warned that the 10% import tax would get passed on to consumers in the form of higher costs for its popular PS4 console. At least for now, consumers will avoid the tax in the leadup to the holidays. Unless a trade deal is reached or there is another delay, the tariffs will go into effect just ten days before Christmas.
In an unprecedented joint statement released during a public commenting period, Microsoft, Nintendo and Sony all said that Trump’s tariffs on Chinese goods would hurt the video game industry. The companies specifically cited that the tariffs would “injure consumers, video game developers, retailers, and console manufacturers,” as well as “put thousands of high-value, rewarding U.S. jobs at risk.”
If you’ve heard about the US-China trade war but aren’t exactly sure what it all means, Vox put together a nice video explaining it, which you can watch below: