U.S. President Donald Trump shows the Executive Order withdrawing the U.S. from the Trans-Pacific Partnership (TPP) after signing it in the Oval Office of the White House on Monday, Jan. 23, 2017. (Photo : Getty Images/ Ron Sachs - Pool)
The video gaming industry may be one of the U.S. industries that will feel the effect of President Donald Trump's recent decision to abandon the Trans-Pacific Partnership. With the possibility of imported game consoles and video gaming titles receiving a trade tariff before the goods can enter the U.S., prices of gaming platforms such as the Nintendo Switch might increase.
Many industry experts and businessmen are reeling from Trump's recently signed executive order that removed the U.S. from the Trans-Pacific Partnership agreement. As part of the new president's "America First" program, scrapping the trade deal is a sign of Trump staying true to his promise to enforce stricter policies against foreign competitors and create more jobs for Americans.
Moreover, it has been widely speculated that the new administration might impose a trade tariff or trade tax for goods that were not manufactured in the U.S. Several reports hinted of a potential five percent or ten percent trade tax that companies might have to pay to have their non-U.S. manufactured goods sold in the country.
Given the speculated trade tariff rates, consumers might see an increase in the selling price of various video game consoles and gaming titles. With many of the said goods coming from Japan and other countries, upcoming gaming platforms such as the Nintendo Switch might be sold at a higher price in the U.S. as compared to other markets.
Recently, a source told Polygon that the Entertainment Software Association (ESA) is already preparing for the possibility of the Trump administration imposing new trade tariff policies. Representing the country's video gaming firms, the ESA is currently "looking into the issue" to come up with plan to address the speculated tariff, according to the source.
In other news, Nintendo's hybrid gaming console will soon be available in many gaming stores worldwide. With a suggested retail price of $299.99, the Nintendo Switch boasts of several upcoming gaming titles from major game publishers such as Electronic Arts, Ubisoft, Bethesda Softworks and more, according to an announcement posted on the Nintendo website.
The Nintendo Switch will be released on March 3, Friday. Watch the teaser clip for the upcoming console below:
