In the letter, the gaming giants (considered the “big three” of the industry) say U.S. tariffs placed on China will harm the console industry. Sony and Nintendo are Japanese, so the Trump administration would likely be unmoved by their protest. However, Microsoft is American and its Xbox brand hugely popular in the States. Microsoft carries weight and is joining the dissenting voices of its rivals. “While we appreciate the Administration’s efforts to protect U.S. intellectual property and preserve U.S. high-tech leadership,” the letter reads, diplomatically, “the disproportionate harm caused by these tariffs to U.S. consumers and businesses will undermine—not advance—these goals.” Addressed to the Office of the United States Trade Representative General Counsel Joseph Barloon. The companies ask for the government to modify their tariffs. “The video game console supply chain has developed in China over many years of investment by our companies and our partners,” the companies wrote. “It would cause significant supply chain disruption to shift sourcing entirely to the United States or a third country, and it would increase costs—even beyond the cost of the proposed tariffs—on products that are already manufactured under tight margin conditions.”
Problems
The companies argue jobs will be at risk, innovation will be stifled and consumers will be affected by the tariffs. Outside the gaming industry, Apple CEO Tim Cook has already petitioned Trump to make changes. “Tariffs would significantly disrupt our companies’ businesses and add significant costs that would depress sales of video game consoles and the games and services that drive the profitability of this market segment,” the companies said.
