Next Xbox and PS5 Price Could Be Affected by Trump’s New Tariff Proposals
Next Xbox and PS5 price could be affected by the on-going tariff war between the United States and China. Both of these countries have always tried to take an upper hand by increasing taxes, but soon it’s expected to impact video game consoles.
The Office of the United States Trade Representative has now published a list of products being considered for new tariffs. This new proposal will result in up to 25% tariff being applied on “essentially all products not already covered by previous tariffs,” which brings controllers, video game consoles and other gaming related products in its category. The list comes on the behalf of United States President Donald Trump, who recently cut off Huawei from every US partner.
This new proposed tariffs will impact the gaming industry since Nintendo, Microsoft, and Sony manufacture most of its products in China.
If the new tariff proposal is accepted, all of the parts and products coming from China will face a 25% import tax. That’ll be a big increase over the current 10% tax. If that happens, gamers will end up paying higher prices for next-gen consoles like PlayStation 5 and Xbox Scarlett. The Entertainment Software Association has already disapproved the tariff proposal by saying:
The video game industry boasts a trade surplus for the American economy. Tariffs will hurt the American economy, its industries, and its consumers.
What’s worrying is that these taxes could be in effect as early as June 24. These tariffs were proposed by Trump last year. The public hearings for these proposed tariffs will begin on June 17, after E3 2019.
It’s possible that gamers will have to pay higher prices for video game consoles after June 24. Further, this will greatly impact the next-generation of consoles and the price of PlayStation 5 in particular.
Just a month ago, Sony surprisingly revealed some exciting tidbits about its next-generation console. Since then, there have been various rumors about the price of PS5. According to the analysts from the Hideki Yasuna Ace Research Institute, PS5 price will be $499. However, this price point will drastically change if the proposed tariffs are accepted.
To find out if the results of these tariff proposals, we will have to wait until June 17.