As news broke about Microsoft effectively forced to shutter part of its cloud business with Huawei earlier, it seems like the hits may continue to come for the software company as US president Donald Trump and his administration look for additional ways to pinch China's economy during the current tariff war the two countries are engaged in.
Based on a report from Nintendo Enthusiast, the escalation in this new US-China trade war has led US president Trump to consider a list of new import taxes that would include taxes on video game consoles.
Nintendo, Microsoft, and Sony all manufacture many of their products in Chinese plants. If these new tariffs pass, all of those parts will be hit with a 25% import tax. The current price is 10%, so that’s a pretty steep increase. Gamers could end up paying the price in the form of more expensive consoles and computer parts. The Entertainment Software Association has weighed in, expressing their disapproval.
Trump's import tax consideration is not really a new concept but one that first surfaced last year. However, the administration has moved to put it in writing and one step closer to being a reality. There a still a handful of hurdles that remain the proposed import tax and the eventual consequence to consumers.
However, the US administration could move as early as the end of next month to impose them, just before president Trump and President Xi Jinping officially meet with at a leaders summit in Japan.