Trump May Be Considering New Tariffs on Gaming Hardware

We might be facing a sequel to one of the least popular policies from the previous administration: tech tariffs. Reports suggest that the president is considering a new wave of import taxes on hardware, which could include gaming consoles. This comes at a time when video game companies like Nintendo are embroiled in lawsuits for not refunding consumers from the last round of tariffs that were ultimately ruled unconstitutional by the Supreme Court.

One proposed tariff strategy could significantly broaden the range of tech products affected, targeting not just chips but also items made with them, such as laptops, gaming consoles, and data center servers. The administration seems to be exploring how these new tariffs could serve as leverage to encourage companies to invest in domestic chip manufacturing.

While AI firms are anxious about the prospect of rising costs, video game developers could find themselves caught in the middle. The idea of using tariffs as a bargaining tool feels less sensible than simply implementing a solid industrial policy to ensure semiconductor factories are built in the U.S.

Earlier this year, the Supreme Court struck down a contentious system of “reciprocal tariffs” with a 6-3 ruling, stating that the president lacks the authority to impose import taxes on other countries without Congressional approval. This decision resulted in significant refunds for companies that had paid these taxes, including console manufacturers. In response to the increased costs, these companies raised their prices, leading some consumers to sue for a share of the refunds.

In short, no one wants to see another tariff debacle that could drive prices up temporarily only to be overturned later. Even without new import taxes, console makers have been increasing prices due to a RAM shortage exacerbated by AI companies investing heavily in memory for data center chips. Analysts are already predicting that Nintendo and Sony may need to raise prices again next year, and that was before the threat of additional tariffs emerged.