ESA says tariffs on video games could ’cause significant harm to everyday Americans’

The Entertainment Software Association (ESA) has expressed concern about the negative impacts from tariffs imposed by US president Donald Trump on goods imported from other countries.

The trade body, which represents leading games companies including Microsoft, Sony and Nintendo, has called for Trump’s administration to consult with the sector on his tariff plans.

“Tariffs on video game devices and related products would impact Americans of all ages across the country,” the ESA said in a statement issued to Kotaku.

“We urge the administration to consult with the private sector in a transparent process to avoid causing significant harm to everyday Americans and to one of the fastest growing entertainment sectors in the United States.”

This weekend, Trump said a levy of 25% on Canadian and Mexican imports, as well as an additional 10% tax on Chinese goods, would come into force on Tuesday.

However, on Monday Mexico said Trump was pausing tariffs for one month after the countries reached a new border agreement to stem the flow of illegal drugs, the BBC reports.

The US president has also said he will impose trade tariffs on the EU, but has suggested a deal could “be worked out” with the UK.

The proposed tariff on imports from Mexico to the US could result in fewer physical game releases and higher software prices, according to Mat Piscatella, executive director of video games at market research firm Circana.

“With 25% tariffs on imports from Mexico on the way, I can see a sharp downtick in the number of disc-based games that get released physically in the US, as much of that production infrastructure is in Mexico,” he wrote on Bluesky after the plans were first announced in January.

If disc-based games do get made, the analyst said he expected increased prices for both physical and digital titles.

“I would, were this to happen, anticipate digital MSRPs to increase to remain at price parity with physical, but who knows.

“In any case, none of this is good for the physical video game market.”