This week, the U.S. government implemented increased tech tariffs, which are impacting the broader industry, especially major Japanese firms. These tariffs focus on goods produced in lower-cost countries, notably China and Mexico. In response, companies like Sony and Suntory have initiated stockpiling efforts in the U.S. market.

The recent tariffs impose a minimum tax of 25% on products from China and Mexico, with potential escalations, such as proposed 100% tariffs on semiconductors from Taiwan. These changes have significantly affected tech companies, including Nvidia, which recently reported a staggering loss of $200 billion in valuation in one day. Retail executives from Best Buy and Target have predicted impending price increases for consumers.

Moreover, during the new talks about tariffs, President Trump accused Japan and China of currency undervaluation, complicating the competition for U.S. manufacturers.

This situation could severely impact Japan’s tech industry due to its reliance on exports, especially to the U.S. Firms like Sony are reportedly preparing for the potential of having to sell older tech models—and, bewilderingly, outdated coffee products—while bracing for escalated prices.

As the tariffs evolve, disruptions in the tech sector are anticipated, with worries especially evident among consumers and gamers. The Entertainment Software Association, representing U.S. video game publishers, warned that these tariffs could inflict significant damage on the gaming sector.