Since the announcement of the 25 percent increase on tariffs for Chinese goods conjured by the Trump Administration sometime last year, the overall market concerning video games and electronic systems began to go into a panic as it would put a steady halt on the rapidly growing industry. However, it was until this past November that it was reported that both the United States alongside China have come to an settlement through negotiating a Phase One Deal.
The agreement discussed between the U.S. and Chinese Ministry of Commerce suggested an appeal which would exclude the tariff to be applied towards video game consoles among other projected goods that will be hauled out of China. Despite the timing of the Phase One Deal just days ahead of the postponed date for the tariffs commencement, the agreement was not settled – instead they have finally processed this week in January 2020.
According to a report over on Polygon, the Entertainment Software Association (ESA) confirms with the outlet that the Office of the United States Trade Representative (USTR) has ‘suspended’ the tariffs on video game consoles last week.
USTR has suspended the tariffs on consoles until further notice. We are encouraged that the Administration suspended the implementation of tariffs on video game consoles and controllers. These tariffs would have significant implications for our industry, which boasts a trade surplus for the American economy.
Although it looks that console manufacturers are safe for the time being, the same cannot be said for tapletop on the other spectrum of gaming. Especially as more modern sets for tabletop requires certain raw materials necessary to create these games, the platform might fall under the imposed tariffs on the Chinese market. While this will not leave a severe burden on the U.S. economy as video games would, it is saddening that tabletop might not be valid for exemption.
Speaking with the Game Manufacturers Association (GAMA), Executive Director John Stacy tells of efforts to implement the same exception for tabletop and related products. “We are working to roll these back as well as prevent the imposition of tariffs on toys and games which was paused by the Phase One Agreement.”
The discussion then turns towards production alternatives through different countries such as Mexico or across the Atlantic in Europe. While tabletop is primarily funded through crowdfunded initiatives like Kickstarter, the best solution would be for the consumer to sway the Trump Administration into rethinking the tariffs again, Stacy shares.
Source: Polygon
