What you need to know
- China and the United States are currently engaged in a trade war.
- President Trump has proposed a 25 percent import tax on consoles.
- The existing import tax is only 10 percent.
- Discussions are still taking place to avoid this.
Currently, there's a trade war going on between China and the United States. Both countries keep on raising tariffs on imported goods, which means that the cost of certain items will rise by another 15 percent or more. According to a report by Nintendo Enthusiast, the "Office of the United States Trade Representative has... published the list of newly-proposed import taxes... at the behest of... President Donald Trump." Unfortunately, video game consoles are on the list.
Currently, Microsoft, Nintendo, and Sony manufacture their consoles in China. While Microsoft may have facilities in Singapore and South America, it's unclear how the company will respond to the increase. The outlet added that "all those parts will be hit with a 25 percent import tax." Considering that the import tax is only 10 percent at the moment, that's quite a hike which will eventually be paid by consumers.
Hopefully, China and the United States can resolve their trade differences soon. While the price of the Xbox One may not increase due to existing inventory, there's the possibility that next-generation machines will be a little more expensive than they should be. The Entertainment Software Association expressed disappointment and surprise when it heard the news. A spokesperson said, the "video game industry boasts a trade surplus for the American economy. Tariffs will hurt the American economy, its industries, and its consumers."
If these tariffs are passed, they could go into place by the end of June. Luckily, China and the United States are still in active discussions so there's the possibility that the trade war will be resolved by then. If not, get ready to potentially pay more for hardware down the line.
Jump into digital
Ditch the discs
Secure your Xbox One S All-Digital Edition, Microsoft's new and ambitious disc-less console. It's the cheapest Xbox One ever made, bundled with a trio of downloadable games.
Xbox accessories you'll love
Every one of these quality accessories is guaranteed to enhance your Xbox experience.
PowerA Enhanced Wired Controller for Xbox One ($20 at Amazon)
PowerA's take on the Xbox One controller is an attractive pickup for budget-conscious gamers that nails all the basics.
Talon PDP Xbox media remote ($20 at Amazon)
The Talon PDP Xbox media remote is great for watching shows on your console.
Xbox One S vertical stand ($10 at Amazon)
Stand your console upright with this accessory.
We may earn a commission for purchases using our links. Learn more.
PS5 games prices are higher than Xbox — but is that a good thing?
Sony's PlayStation 5 reveal came with some big caveats, and one of the most overlooked ones is the fact that games will be more expensive, seemingly across the board. Should Microsoft and Xbox jump on that train as well?
Review: Gigabyte's Z490 AORUS ULTRA is a gorgeous Intel motherboard
Gigabyte's Z490 AORUS ULTRA is a motherboard you should consider for a 10th or 11th Gen Intel-powered PC. On paper, it has plenty going for it, including amazing power design and cooling, passively cooled M.2 slots and good overclocking support.
You can get the Windows 10 October 2020 update early – here's how
In this guide, we'll show you the steps to upgrade your computer to the final release of the Windows 10 October 2020 Update before it's officially available to everyone.
If you want FreeSync for your Xbox One games, you have few options
Keep your Xbox One games looking smoother than ever with these FreeSync monitors.