The Entertainment Software Association (ESA) has expressed concerns over the potential negative impact of President Donald Trump's new import tariffs on the video game industry. In a statement to IGN, the ESA urged the Trump administration to engage with the private sector to mitigate any adverse effects on the sector, which significantly contributes to the U.S. economy.

"Video games are one of the most popular and beloved forms of entertainment for Americans of all ages. Tariffs on video game devices and related products would negatively impact hundreds of millions of Americans and would harm the industry’s significant contributions to the U.S. economy. We look forward to working with the Administration and Congress to find ways to sustain the economic growth supported by our sector."

The ESA represents major video game companies such as Microsoft, Nintendo, Sony Interactive Entertainment, Square Enix, Ubisoft, Epic Games, and Electronic Arts.

Over the weekend, President Trump signed an order imposing tariffs on Canada, China, and Mexico, prompting retaliatory measures from Canada and Mexico. China's Ministry of Commerce announced plans to file a lawsuit with the World Trade Organization. Although the tariffs are set to take effect on Tuesday, Trump has decided to pause the tariffs on Mexico for a month following discussions with the country's president.

While the current tariffs target Canada, China, and Mexico, President Trump has indicated that similar measures could be applied to the European Union and possibly the UK. He described the European Union's actions as an "atrocity" and suggested that the situation with the UK could be resolved.

Analysts have been closely monitoring the potential effects of these tariffs on the video game industry. MST Financial senior analyst David Gibson stated on X that the China tariff would not affect the Nintendo Switch 2 in the U.S., but tariffs on Vietnam could alter this scenario.

Now obviously if tariffs go onto Vietnam imports to the US then that changes the outcome. PS5 not so lucky but Sony might to scale up non-China production to help solve the problem.

— David Gibson (@gibbogame) February 2, 2025

In a recent interview with IGN, Super Joost newsletter author Joost van Dreunen discussed how tariffs could influence the cost and consumer reception of Nintendo's upcoming console, emphasizing the broader economic environment's role in shaping market dynamics.