President Donald Trump's proposed 25% tariff on imports from Mexico and Canada, expected to take effect on February 1, could have a significant impact on the US gaming market, experts warn. That executive order, discussed shortly after Trump's inauguration, has raised concerns about higher prices and fewer physical game releases.
According to federal trade data, Mexico and Canada are among the United States' top three trading partners, together accounting for 30% of the total value of U.S. imports last year. If imposed, these tariffs could put a strain on Americans' wallets as retailers are unlikely to be able to absorb the full cost increases. For example, Trump's proposed tariffs could significantly increase the price of the Nintendo Switch 2. Industry insiders have expressed concerns about possible price increases, citing uncertainty over how the tariffs could affect the console's classification and cost. While President Trump claims that foreign exporters will bear the brunt of tariffs, some of the burden will inevitably fall on U.S. consumers.
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Industry experts are particularly concerned about the impact on the video game market. Mat Piscatella, Circana CEO and video game industry analyst, predicts a “sharp decline” in the number of physical game releases in the United States. Much of the production infrastructure for these games is located in Mexico, and a 25% tariff would disrupt supply chains and increase manufacturing costs. As a result, retailers may increase prices on both physical and digital games to maintain price parity. “As physical game prices rise, digital game MSRPs will likely follow,” Piscatella noted in a recent discussion on Bluesky. He expressed doubts about the positive results for the physical gaming market in the near future.
Trump's Mexico tariffs could drive up video game prices
Some retailers are already taking steps to mitigate the impact of potential tariffs. Strategies include stockpiling goods and relocating production from tariff-affected regions. However, these measures are not a long-term solution. Many products, especially those that require specialized production, cannot be easily relocated or stored in larger quantities. The proposed tariffs threaten to reshape the video game market in the United States, making it more expensive for gamers and potentially restricting access to physical releases. As the February 1 deadline approaches, industry representatives and consumers alike are preparing for the potential consequences of these sweeping trade changes. Whether through higher prices, fewer options, or both, the video game market is unlikely to emerge unscathed.
This news follows growing concern among fans that Trump's presidency could be delayed Grand Theft Auto 6's publication. Fans who have been waiting for over a decade fear the game could face obstacles related to Project 2025, a controversial Heritage Foundation initiative. While Trump has distanced himself from the project, his language suggests possible censorship of video games and media. Given the violent and adult content that is typical of the GTA But some fear it could become a target if the initiative's proposals are implemented.
