Game companies warn Trump management of Chinese tariff impact on the industry

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Game companies warn Trump management of Chinese tariff impact on the industry
Game companies warn Trump management of Chinese tariff impact on the industry

Game companies Sony, Microsoft and Nintendo have sent a joint letter to Trump, warned the government that tariffs on Chinese goods will hurt the video game industry and its employees significantly.

Companies have argued with the US government that a 25 percent tariff increase would drive US consumers $ 840 million more for game controllers.

“While appreciating the Department’s efforts to protect intellectual property in the United States and maintain high-tech leadership in the United States, the damage caused by these tariffs to consumers and companies in the United States will lead to the destruction of their own goal, not strengthening it.” the companies said in a statement.

The game companies, with their 7-page message to the US Trade Representative’s office, warned that 96 percent of all video game consoles were set up in China last year and that restructuring the whole supply chain to avoid costs would be incredibly harmful to the sector.

The letter is the latest criticism of Trump’s tariffs, which will affect production costs for everything, especially computer game parts. Technology giants will have to choose between turning manufacturing efforts into other countries such as Taiwan or carrying the incremental costs to American consumers.

Read also: More than 600 US companies demand Trump to resolve trade dispute with China