US delays 10% tariff on video game consoles imported from China

The United States Trade Representative (USTR) has delayed the introduction of a 10% tariff on selected Chinese imports including video game consoles.

The new tariff due to come into effect on September 1 was originally expected to cover $300 billion in Chinese goods including game consoles, cell phones and laptops, but these consumer electronic goods will now be exempt from additional taxes until December 15.

USTR also said certain products are being removed from the tariff list altogether “based on health, safety, national security and other factors and will not face additional tariffs of 10 percent”.

Sony, Microsoft and Nintendo requested in June that game consoles be removed from the list of products the Trump administration was considering imposing new tariffs on as part of its trade war with China.

In a joint statement the platform holders said placing tariffs on consoles “would have a ripple effect of harm that extends throughout the video game ecosystem”.

The companies noted that over 96% of game consoles imported into the US last year were made in China and claimed the impact of changing complex, long-established supply lines would “increase costs—even beyond the cost of the proposed tariffs—on products that are already manufactured under tight margin conditions”.

Sony has reportedly said it would need to increase the retail price of PlayStation systems should the US government introduce a higher tariff on consoles produced in China.