ESA says US tariffs will cause ‘significant harm’ to games industry

Tariffs could make games more expensive, and reduce business opportunities.
esa entertainment software association

The Entertainment Software Association (ESA) has noted recently-implemented US tariffs increasing the tax of imports from Canada, Mexico, and China will have a significant, negative impact on the games industry.

Speaking to Kotaku, the ESA claimed “Americans of all ages across the country” would be impacted, as well as the wider games industry. It has asked the Trump administration to consult with the private sector on its plans for tariffs, to avoid stifling the growth of American-made games, and the wider US economy.

“We urge the administration to consult with the private sector in a transparent process to avoid causing significant harm to everyday Americans and to one of the fastest growing entertainment sectors in the United States,” the ESA said, via Kotaku.

In a further statement to VGC, the ESA has cemented its view, claiming the tariffs would directly harm the contributions of the US games industry to the wider economy.

“Video games are one of the most popular and beloved forms of entertainment for Americans of all ages. Tariffs on video game devices and related products would negatively impact hundreds of millions of Americans and would harm the industry’s significant contributions to the US economy,” the ESA said. “We look forward to working with the Administration and Congress to find ways to sustain the economic growth supported by our sector.”

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While the ESA did not specify the potential harm caused, analysts have flagged a range of issues, particularly with tariffs placed on Mexico. While these tariffs are now officially paused, as a deal has been struck to avoid them, it was originally the plan for the US to tax all imports from Mexico at an additional 25%.

Many physical games for the US are currently produced in Mexico, per analyst Mat Piscatella. In the wake of the initial tariff announcements, he wrote on Bluesky: “With 25% tariffs on imports from Mexico on the way, I can see a sharp downtick in the number of disc-based games that get released physically in the US, as much of that production infrastructure is in Mexico. If they do get made, I expect higher prices both phys & dig.”

It’s unclear yet what impact these tariffs will have in the long run, should the plan to implement them continue. While they are designed to boost the US economy, it’s clear from wider analysis they have the potential to kick off a global trade war, negating any potential savings in the process. Goods will simply become more expensive, with the costs being passed down to the average consumer.

It does appear this outcome has been temporarily paused – but we could still see tariffs interrupting the US games industry in future, and in a way that will eventually impact the rest of the world. For now, the ESA has pledged to ‘find ways’ to work with the US government on an alternative solution, but we’ll just have to wait to see what eventuates.

Leah J. Williams is a gaming and entertainment journalist who's spent years writing about the games industry, her love for The Sims 2 on Nintendo DS and every piece of weird history she knows. You can find her tweeting @legenette most days.