The news of a trade war taking place between China and the United States is certainly not new. Both countries are stubbornly driven towards raising the tariffs on imported goods, which further implies that the prices of certain items will further rise by 15 per cent or even more. A report by Nintendo Enthusiast disclosed that the Office of the United States Trade Representative had published a list of newly proposed import taxes, which were at the order of President Donald Trump. Video game consoles are one such item present on that unfortunate list.
The main companies who manufacture consoles in China include Nintendo, Microsoft and Sony. Although Microsoft has facilities in Singapore and South America, there is no assurance as to how the company may react to this increase. The report mentioned above further added that those parts were to be hit with a 25 percent import tax. In comparison to the current import tax rate of only 10 per cent, this would surely be an alarming hike, which would eventually burden the consumers.
In hindsight, the best option would be for China and the United States to resolve their trade differences as soon as possible. The price of Xbox One may remain untouched due to its existing inventory; but the machines belonging to the next generation may, in fact, be a tad bit expensive than they really should be.
Utter astonishment and disappointment were the reactions on behalf of the Entertainment Software Association on hearing this news. A spokesperson from the association had commented on how the video game industry boasts of a surplus for the American economy. These tariffs would, therefore, hurt the entirety of the American economy, including its industries and the consumers.
If eventually passed, these tariffs could actually be executed as early as June. Fortunately, the two countries, China and the United States, are undergoing active discussions into this, so there is a distant hope of the trade wars being somewhat resolved by then. In the tragic scenario that it doesn’t, consumers would have to be prepared to pay more for their gaming hardware in the near future.
