The US government is preparing to initiate a sweeping trade conflict against Canada, Mexico, and China which has the potential to wreak havoc on international economies, destabilize global security, and raise the costs of video games.

In response, the Entertainment Software Association (ESA), which represents video game publishers in the United States, has expressed concern stating that these tariffs may greatly harm both the gaming industry and its consumers.

“Video games are a cherished form of entertainment for countless Americans across all age groups,” the ESA noted. “Imposing tariffs on gaming devices and related products would adversely affect hundreds of millions of Americans, jeopardizing the industry’s substantial economic contributions. We wish to collaborate with both the Administration and Congress to identify methods to sustain the economic growth our sector supports.”

While digital distribution of video games is now the norm, significantly exempting them from tariffs, actual hardware such as PCs, consoles, and peripherals will be impacted. The anticipated price hikes could be considerable. Last week, it was mentioned that if President Donald Trump goes ahead with proposed tariffs as high as 100% on microchips from Taiwan, “even an RTX 5090 for $2,000 might eventually look like a bargain.”

Even with a projected 25% tariff on imports from Canada and Mexico, a substantial price increase is expected. Trump remarked that when announcing these proposed tariffs, manufacturers such as Nvidia and AMD would likely pass on the extra costs to consumers.

The magnitude of financial implications is notable, with the ESA reporting that in 2024, total video game sales amounted to $58.7 billion; although most of this figure was derived from video game content, hardware and console sales contributed $4.9 billion. With uncertainties surrounding the tariffs, the future of spending in the US gaming industry is uncertain.

“Originally, my 2025 forecast for consumer spending in the US video game sector was $61.5 billion, reflecting a 4.8% increase compared to 2024,” stated Mat Piscatella, Executive Director of Circana, on Bluesky. “We need to reassess if and when clarity will be achieved in the midst of the current turbulent situation.”

Unfortunately, the ESA did not specify how it plans to deal with these challenges, perhaps because viable solutions are elusive. Alongside potential military actions against Mexico, annexing Greenland, and dismissing the existence of transgender individuals, a global trade conflict is among the Trump administration’s prominent strategies, and it is unlikely that objective justifications will yield effective responses.

The ESA opted not to provide further comments on the matter.