President Trump proposes import tax on gaming consoles due to China trade war

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.

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Asher Madan

Asher Madan handles gaming news for Windows Central. Before joining Windows Central in 2017, Asher worked for a number of different gaming outlets. He has a background in medical science and is passionate about all forms of entertainment, cooking, and antiquing.