Analysts the impact of the US tax rate on console and physical games

summarize

  • Import taxes in the United States in China and Mexico may lead to higher console prices and game prices.

  • There is concerns about the launch of the Nintendo Switch 2 and the increase in price due to taxes.

  • Analysts predict that many games will no longer be published.

Imported tax by President Donald Trump, President of the United States through the order of executives, still causing concerns for video games that care about the budget due to the trade war he reported to China, Canada and Mexico are still increasing continuously. New taxes or increases with all three countries, effective on March 4 and many industrial analysts show concerns about what they may mean console, such as the Nintendo Switch 2 and physical video disk.

US import tax rates in China, in the amount of 10%, starting on February 4, which increased by 20%. One month later, on March 4, the new import tax is effective for Canada and Mexico on the same day, in the same amount of 25 percent of the tax collection. By China and Canada, with Mexico's planning for announcement at the beginning of next week There is also a great decrease in the stock market because analysts show uncertainty about the future of international trade.

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Walmart may increase the price to respond to Trump's tax.

According to Walmart CFO John David Rainey, the president was chosen by President Donald Trump, which is taxed, may lead to higher prices for consumers.

As for the video industry industry, tax rates that affect China and Mexico are causing special concerns, as most of the console that comes into the United States is produced in the past, while the physical disk is usually imported from the back of Daniel Ahmad, the director of the Niko Partners. And rejected Trump's thoughts in moving console and the production of disk to the United States border, claiming that the cost of production in the country will make them shoot “via the roof”, especially regarding the sales of hardware, video games in January, decreased in January, with reports of about 45 % of the console.

Trump's tax rate causes more concerns for video game experts.

From three major console manufacturers, Nintendo is likely to be the first to see the important impact of taxes. Even before the announcement in January, there is concern that the tax may affect Switch 2 from Jeff Grubb within the industry and other data sources. But expected to be released in the year 2025. Previously reported from TheGamer, the Switch 2 is manufactured at Weltrend in China and the concerns still exist.

In addition, the customs tax per Mexico has stimulated concerns about the future of physical games with concern that the price increases. The optional theory shows that the elimination of many physical games is the latest post about the Bluesky account of PICATELLA.

Nintendo Switch 2 tags of art cover

Nintendo Switch 2

brand

Nintendo

Traditional release date

2025

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