On Monday, January 23rd, President Trump signed an executive order to pull out of the Trans-Pacific Partnership, which had been the signature trade deal of former president Barrack Obama. This act confirmed the seriousness with which the new president is taking his stance against foreign competitors, and The Entertainment Software Association has taken note.
A recent Polygon article reports that the ESA is currently, “Formulating a plan to deal with the possibility of U.S. President Donald Trump rolling out trade tariffs.” Imposed tax tariffs would make imported goods (such as the highly anticipated Nintendo Switch) more expensive, in order to encourage people to buy goods that are made in the United States.
How much more expensive? That remains to be seen. Although in December of 2016, CNN revealed that Trump’s transition team had been deliberating imposing tariffs as high as 10%. Washington players have warned the Trump administration that such a move could cause a backlash and and lead to eventual trade war.
Polygon’s source at ESA told the site, “We are looking into the issue and can provide more information shortly.”