Sony, Nintendo, and Microsoft ask for Video Game Consoles to be Waived From Current Round of U.S. Trade Tariffs on China

Sony, Nintendo, and Microsoft ask for Video Game Consoles to be Waived From Current Round of U.S. Trade Tariffs on China

Sony, Nintendo and Microsoft have asked for video game consoles to be waived from current United States trade tariffs on China, according to a joint letter sent by the companies dated June 17.

The 7-page letter, sent to the Office of the United States Trade Representative, claims the tariffs could significantly harm the video game industry and its employees as a whole. The companies claim that the 25 percent tariff would increase the cost for consumers by over 800 million dollars altogether.

While we appreciate the Administration’s efforts to protect U.S. intellectual property and preserve U.S. high-tech leadership,” reads the letter, “The disproportionate harm caused by these tariffs to U.S. consumers and businesses will undermine—not advance—these goals.”

The PS$ sold over 19 million units between March 2017 and April 2018

According to the letter, around 96 percent of console production takes place in China. The letter further states that this supply chain took years to develop, and shifting it over entirely “would increase costs—even beyond the cost of the proposed tariffs—on products that are already manufactured under tight margin conditions.”

The letter was signed by a representative of each company. Linda Norman from Microsoft, Devon Pritchard fro Nintendo of America, and Jennifer Liu of Sony.

This is yet another complaint at the current round tariffs created by the Trump administration, which also include hundreds of other consumer products. As of the writing of this article, the tariffs have not been implemented yet, and the U.S. and China are still in ongoing trade talks.

Sources: Letter sent by companies, Press release from Office of Trade Representative