The Trade War’s Next Victim: Gaming Consoles and Smart Speakers

The ongoing trade war between the United States and China has been making headlines for months, with tariffs and counter-tariffs being imposed on a wide range of goods. Over the weekend, the U.S. announced that it would be exempting certain tech products, including smartphones and laptops, from these tariffs. However, a closer look at the list reveals that gaming consoles and smart speakers are still very much in the crosshairs.

The Impact on Gaming Consoles

Nintendo’s highly anticipated Switch 2 console is a prime example of the impact that these tariffs could have on the gaming industry. According to an internal assessment memo by a major Apple and Nintendo supplier, game consoles are still subject to a 145% U.S. tariff on goods made in China. This means that the Switch 2, which is manufactured in China, could be hit with a massive tariff, potentially making it more expensive for consumers.

The implications of this are significant. The Switch has been a huge success for Nintendo, and the company has already delayed U.S. pre-orders for the Switch 2 due to concerns over the trade war. If the tariffs are imposed, it could lead to a significant increase in the cost of the console, which could in turn impact sales.

Smart Speakers in the Crosshairs

But it’s not just gaming consoles that are at risk. Smart speakers, which are also manufactured in China, could also be hit with tariffs. This could have a significant impact on companies like Amazon and Google, which rely heavily on these devices to drive their smart home ecosystems.

What Does This Mean for Consumers?

So what does this mean for consumers? In short, it means that they could end up paying more for the products they want. The tariffs could lead to higher prices for gaming consoles and smart speakers, which could make them less attractive to consumers.

Actionable Insights

So what can consumers do to mitigate the impact of these tariffs? Here are a few actionable insights:

• Consider buying products that are manufactured in countries that are not subject to tariffs, such as Mexico or Vietnam.
• Look for products that are made in the U.S. or other countries that are not subject to tariffs.
• Consider buying older models of products, which may be less affected by the tariffs.

Conclusion

The trade war between the U.S. and China is complex and multifaceted, and its impact on the tech industry is far-reaching. While the exemption of smartphones and laptops is a welcome development, the fact that gaming consoles and smart speakers are still subject to tariffs is a concern. As consumers, it’s important to be aware of the impact of these tariffs and to take steps to mitigate their effects. By doing so, we can ensure that we continue to have access to the products we want, at prices we can afford.