U.S. President Donald Trump’s tariffs on Canada (25%), Mexico (25%), and China (20%) have reportedly gone into effect, and with that comes the news that video game consoles, smartphones, GPUs, and laptops are among the products that will be affected, according to analysts.
See below for some numbers from Daniel Ahmad (Director of Research & Insights at Niko Partners), who warned his followers yesterday that physical video games will also be affected due to the part that Mexico plays in their manufacturing:
Ahmad goes on to point out how 75% of consoles imported to the United States happen to come from China, which, as noted above, is subject to a 20% tariff:
Another analyst, Mat Piscatella (Executive Director & Video Game Industry Analyst at Circana), has suspected that the tariff could mean the death of physical releases:
“4K UHD physical will also be hit I would think,” noted one of Piscatella’s followers.