The trade war between the United States and China has possibly been one of the biggest events of the past decade, and it has had far-reaching consequences all over the world. After all, when the world’s two biggest economies are involved in a trade skirmish, then it is almost a given that the ripple effect will reach other countries and a range of industries. The United States government has imposed fresh tariffs on a range of items and in a new development, three of the leading gaming console makers have urged the government to remove those tariffs.
Microsoft, Sony, and Nintendo are the three leading gaming console manufacturers in the world and a rare show of solidarity; the three companies sent a joint letter to the United States government regarding the tariffs. In the letter, the companies stated that the fresh tariffs proposed by the government on gaming consoles will force consumers to pay a total of $840 million. It added that such a burden on gaming console buyers would eventually lead to $350 million loss for the entire United States economy.
In addition to that, the companies also added that such a burden on the industry will not only hurt the companies which manufacture the products but also those who are employed in the industry. It could harm the zeal to innovate and come up with no products on the part of developers. Additionally, if the sales drop considerably, then it could also have an adverse long term effect on the industry as a whole. In the letter, the company stated,
While we appreciate the Administration’s efforts to protect US intellectual property and preserve US high-tech leadership, the disproportionate harm caused by these tariffs to US consumers and businesses will undermine – not advance – these goals.
It remains to be seen how the Trump Administration responds to the letter sent by three of the biggest corporations in the world. At the end of the day, hurting American corporate giants like Microsoft will perhaps not be in the government’s best interests.