This year in the gaming market has left a large impact from the consistency of well-received titles along with the knowing of the next generation of consoles just waiting around the corner next year. However, 2019 also introduced the heavy-weighted tariffs that were set to go into affect coming this Fall. That was until standing U.S. President Donald J. Trump decided to postpone the tariff’s until the 1st of December, just days following the annual Black Friday promotion.
The tariffs have already went into affect which applies to some consumer goods including clothing for instance. However, this 25 percent hike on goods being imported from China was projected to hurt not just the economy in the East, but even America’s own says Nintendo, Microsoft, and Sony. The three console giants in response to the then-proposal for the tariff suggested that the President would reconsider passing the impost through a joint letter.
In a recent report from Bloomberg, discussion between the two countries on the approaching full effect of the tariffs have spawned renegotiation which proposes a phase one trade deal. Told by Chinese Ministry of Commerce spokesman Gao Feng, the two parties have resolved the addition of next month’s tariffs through a new agreement.
In the past two weeks, top negotiators had serious, constructive discussions and agreed to remove the additional tariffs in phases as progress is made on the agreement.
Feng’s statement is later supported by White House economic advisor Larry Kudlow who confirms the negotiation’s progress. “If there’s a phase one trade deal, there are going to be tariff agreements and concessions.” Deciding to follow through with relinquishing later tariffs through phases would apply to the worrying increase on console units and mobile devices.
As already said that the current tariffs in effect has only affected textile goods, electronics have yet to receive the hardened tax. With this year’s Black Friday only living three days from the tariff’s commencement, this would relieve the tension held on consumers aware of the short notice following the Thanksgiving sales. Notable, the following Cyber Monday promotion would happen after the December 1st tariffs has been put into effect.
Regardless, if negotiation has proven to introduce a new trade deal between the United States and China, hopefully these restructuring discussions will resolve the current issue at hand for the electronic gaming market, and just in time for later this November.
Do you think the two nations will come to an full agreement before the tariffs go into full effect?