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Forums - Gaming Discussion - Trump's new tariff proposals include a 25% tax on video game consoles

I generally favour trump because the left are batshit crazy communist loons but he has dropped the ball here, this decision is idiotic.



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Dulfite said:
Megiddo said:

China can easily win a trade war with the U.S. They have far more buyers for their exports than just the United States. Whereas in the US many of our exports were sent mainly to China and we are having difficulty finding other partners. China is in a much, much more advantageous position to 'win'.

I disagree, but that's okay. In 15-30 years China is going to be dealing with a situation that makes our baby boomer social security problem look like a joke. That need as much money from us as possible, as quickly as possible, while they try to sort out their own mess. You can think what you'd like, that's fine, and you may be right in the end, but I think Trump will break China on tariffs just like he did Canada and Mexico.

Trump's deal with Canada did little more than reinforce the idea that picking a fight with them was an awful idea. The changes in regards to Canada are minor (especially for an update of a document that Trump called the worst trade deal ever made) and are mostly feel-good measures which do little more than give Trump a talking point he can use to tell people that he "won" and that is assuming it even gets passed in its current form.



Well I guess the sweet spot price point in the US is about to go belly up.



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spemanig said:
I'm stupid - do tariffs effect digital software or just physical products?

It won't affect games sales.  The games are produced in Japan, not China.  The consoles themselves for all three console makers are assembled in China, and therefore buying the actual console would be the only thing affected.

This tariff would only apply to China after all.



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SpokenTruth said:
Shore said:

That wouldn't affect microsoft and sony consoles here where i live (they actualy produce them locally!) but nintendo products will be severely affected by this.

You wouldn't be affected by US tariffs on Chinese goods no matter where they are manufactured.  You live in Brazil. Tariffs are a tax paid by local import companies, not the actual nation the tariffs apply to. 

I didn't thought about this, thanks for clarifying!



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Shiken said:
spemanig said:
I'm stupid - do tariffs effect digital software or just physical products?

It won't affect games sales.  The games are produced in Japan, not China.  The consoles themselves for all three console makers are assembled in China, and therefore buying the actual console would be the only thing affected.

This tariff would only apply to China after all.

Game discs/packaging isn't produced in Japan for the world, every region has it's own production for that and there are tons of different producers to select from. The situation for physical Switch games might be more complex, but I believe Taiwan easily has enough flash production capacity to handle that for the US market.

And no, the console itself isn't the only thing that's affected, peripherals ( the 90+% that are manufactured in China) are affected aswell.

Last edited by Lafiel - on 24 May 2019

These "taxation is theft!" GOPers have no leg to walk on now.



Hope this stupid trade war ends before muh PS5 gets here. Not holding my breath, though.



haxxiy said:
Dulfite said:

I considered including that option in my post, but for some reason decided not to do so. You are right, they could just wait until a more pro-globality candidate wins office (in a year or 5 years) like Hillary Clinton, and Biden is certainly in that mold (and also by far the most likely Democratic nominee).

As a side note, China is the main exporter to most Asian countries, most of which are quickly joining the global middle class. In absolute terms, India alone adds more GDP per year than North America and the European Union combined. Demographically, they are some two decades behind South Korea and Taiwan, so I don't think they're that much in a hurry as you believe. They'll be fine.

Not that I agree with this whole global trade business, mind you. To buy and sell locally is much better to the environment. But we're going way off topic here.

Well India better keep that up because there is a shit ton of poor people there!  GDP doesn't equal wealth for all.



SpokenTruth said:

And finally, you (and Trump) need to recognize that we are a global market.  You cannot isolate yourself anymore.  That ship sailed decades ago. 

Nah, China is proof that a nation only needs to globalize at the bare minimum so that they can see an inward flux of IP transfer. After all, China bans google services, facebook, twitter, etc among other US based services so their pretty damn isolated ... 

China for all practical intents and purposes is an exceptional success story of how a single country can innovate in all complex industries like semiconductors, telecommunications, nuclear power, and high speed rails. Pretty soon, they'll have an independent aerospace technology and biotechnology sector so that no amount of trade 'embargo' from the west or it's allies will ever do any damage to China ... 

Personally, I don't think we should empower China any further than we have to. It would be bad news if China stopped it's dependence on western technology because now they truly have an option to not cooperate with America or it's allies ...