As the inauguration of President-elect Donald J. Trump approaches, a wave of anticipation and anxiety is sweeping across the consumer technology sector. A recent report by the Consumer Technology Association has begun making the rounds, discussing the potential impacts of Trump’s proposed tariffs on a range of foreign goods, and the results could be noteworthy, particularly for gamers, tech enthusiasts, and everyday consumers.
The proposed tariffs could push prices of gaming consoles up by as much as 40%, turning a $500 PlayStation 5 into a $700 to $1,000 investment. Meanwhile, the cost of smartphones may increase by 26%, and laptops and tablets could see a staggering 46% price hike. This prospect is rooted in Trump’s suggestion of implementing a 10% to 20% tariff on imports from all countries except China and a hefty 60% to 100% tariff on Chinese imports.
This drastic measure could have a domino effect, affecting not just physical goods, but digital ones too. For instance, a digital game such as Black Myth: Wukong could see its price doubled for American consumers. The reason behind this is clear—about 90% of video game and audio equipment in the U.S. market comes from imports, with a significant chunk originating from China.
Additional figures revealed by the U.S. Bureau of Economic Analysis in 2017 show that 88% of computers and 78% of electrical appliances sold in the U.S. are imports, mostly from China and Taiwan. It’s conceivable that a broad tariff strategy could make an $80 AAA game spike to $112, or in a more extreme scenario, reach $160.
However, while the numbers paint a concerning picture, there’s room for skepticism. Many experts doubt that Trump will actualize such aggressive tariffs. During his first term, despite initial promises, Trump opted for more strategic tariffs, such as the 50% tariff on solar panels and washing machines in 2018, alongside targeted tariffs on steel and aluminum. A sweeping 60% tariff on all Chinese imports was far from reality back then.
As we look ahead, there remains a possibility these tariffs could come to fruition, given changes in Trump’s economic team. However, the presence of economic libertarians within the administration might counterbalance the aggressive tariff plans. At this point, it’s too early to definitively predict the direction of these policies. For now, consumers and industry players alike watch and wait to see how these proposals will unfold under Trump’s leadership.
