In an unprecedented solidarity exhibition, the world's leading video game console producers issued a statement against President Donald Trump's proposed 25 percent tariff on consoles produced in China. Microsoft, Nintendo and Sony say the cost will ultimately be relayed to US consumers and that the proposal will endanger the job of more than 220,000 Americans, including hundreds of small businesses.
completed list of goods imported from China with tariffs imposed by the Trump administration on the United States trade representative. If video game consoles are added to the list, they would cost the major console manufacturers 25 percent more to import almost overnight.
Declaration echoes similar comments from the Game Manufacturer's Association (GAMA), a non-profit organization representing more than 1
"While we appreciate the administration's efforts to protect US intellectual property rights and preserve US high-tech leadership, the disproportionate damage caused by these tariffs to US consumers and businesses will undermine – not advance – these goals," the statement said. which is dated June 17. Therefore, we respectfully demand that the administration remove HTSUS subheading 9504.50.00, which covers video game consoles, from the final list of tariffs, thus renouncing the use of tariffs on these products. "
The signatories include Linda K. Norman, vice president and vice president of Microsoft Corporation; Devon Pritchard, director general and executive vice president of business associates of Nintendo of America; and Jennifer Liu, director general, senior vice president, legal and business affairs at Sony Interactive Entertainment.
The seven-page document, complete with more than 20 footnotes, is a remarkable window in the work of an industry desperately trying to explain to the president himself, describing how the three largest console producers are producing and selling game consoles to or near It is simply not possible to buy alternative components and rewind multiple assembly plants in alternative countries.
The three multibillion-dollar companies say that while they are likely to see fewer sales Of the consoles, the small businesses will actually make videos pills would be damaged the most.
An excerpt from the joint statement:
Economically, the video game industry contributes significantly to the US economy, and the growth this year is impressive. The US video game industry generated a total revenue of $ 36 billion in 20172 and $ 43.4 billion in 2018.3, reflecting over 20% growth. This industry has direct and indirect employment of more than 220,000 people. Ninety-nine points seven percent (99.7%) of video game companies qualify as small businesses and can be found in each of the fifty states; Many develop cross-platform video game software, from PC to mobile, including video game consoles that we produce, and are an integral part of the booming app economy.
The letter continues to say that if the tariff of consoles were to be put in place, it would "substantially disturb companies' businesses and add significant costs that would push the sales of video game consoles and games and services that run the profitability of this market segment." The cost – an estimated $ 840 million – would be shifted almost entirely to consumers. The end result would probably "put a new game console out for the reach of many American families […] this holiday season."
The deadline for formal recalls of the proposed tariffs was June 24. No final deadline has been offered from the administration when the proposed tariffs will be completed.