Trump's new tariff proposals include a 25% tax on video game consoles

[DonFerrari]

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. 

He is talking about our grey market. Most of it comes from Paraguay, that import from USA (from regular stores).

So they would need to change the way to import (Paraguay) from China directly.

Dulfite said:
Here's my take. It will only be temporary, and China cannot win a trade war with the U.S. so they will eventually break and then prices will be lower again and the U.S. will reap the benefits of having done it in the first place by having American made products purchased more because the tarrifs increase the cost of foreign imports and make them less of a steal. We import far more from China than they import from us, so they cannot win this fight. It's just a matter of time.

1). You must not be too familiar with the growing Chinese economy.  They already passed the US GDP under purchasing power parity indicators and will pass the US by 2026 using non-purchasing power parity indicators.

Also, the reason we import a lot of products in not just for the sake of cost but because it's not manufactured in the US at all.  You can't just buy US manufactured Sony, MS or Nintendo consoles because they aren't manufactured here. And that's just talking final products.  When you start talking about components, we would get our asses kicked. Want US rare Earth minerals?  Good luck.  80% came from China.  And the 10% or so we do mine ourselves, we ship to China for processing...which is now subject to the tariff anyway.

By the way, we are not China's only export market. Not only can they win this trade war, but it could easily make their ties to other markets stronger making them and those other markets themselves stronger.  While we lose because we do not have the materials, infrastructure or markets to make up for the difference or lost access to minerals and products.

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

VAMatt said:

DonFerrari said:

Depends on the legislation, but most certainly would apply to all.

At least in Brazil all gaming SW have the same tariff independent of being on any hardcopy.

Only if the digital game comes from China.  And, at this time, they're only talking about consoles anyway.

That is why I said depend on how the law is written.

In Brazil we pay the same tax for digital and physical sold here. But if I open an USA PSN I won't pay any brazilian tax, of course government could see that as tax evasion.

FarleyMcFirefly said:
Pardon my ignorance, but will this have a big effect on Canada as well?

I'm all for taxes when they are used properly, but this seems like bull shit.

No tax is used properly.

Lafiel said:

cycycychris said:
Better add at least $100 onto the price of all consoles now. Right in time for the next gen too. I actually wouldn't be surprised if this makes the console makers looking into assembling the consoles in the US. Don't know if that would knock enough off the price to make it work the effort though. But if this tariff is something that they think will stay in place for a while its an option. Overall more bullshit from Trump.

Wouldn't most parts come in from China and hence get slapped with tariffs? Sony afaik still has some assembly lines in Japan they could expand to atleast lessen tariff impact on a part of their US bound consoles.

Not really, you can always use a proxy in the middle.

Or you can use the plants of Sony and MS in Brazil.

Bofferbrauer2 said:

sethnintendo said:
Just want another country to start building durable goods again. These days most shit from China is cheap and shitty. Sure there are some reliable products but go back 3 or 4 decades they built shit to last. Now we are in a throw away economy. Something breaks go buy another because prob cost just as much fixing than to replace. I'll take Japan they usually make good shit. They can make good cars but apparently not airbags!

Problem is, that the incentives for that are made from us, not China.

Customers in general rather buy cheap products than long-lasting ones. Which pushed the producers to keep things running just as long as they need to, aka as long as it's under some kind of warranty.

So, either the whole population shifts its consumerism to long-lasting products, or there need to be legal changes in the length of warranties to make that happen.

cycycychris said:
Better add at least $100 onto the price of all consoles now. Right in time for the next gen too. I actually wouldn't be surprised if this makes the console makers looking into assembling the consoles in the US. Don't know if that would knock enough off the price to make it work the effort though. But if this tariff is something that they think will stay in place for a while its an option. Overall more bullshit from Trump.

The importing costs get eaten up by wages, so doubtful that they'll do so. Also, new factories would need to get build, which takes a while and is expensive.

However, there's a possibility that the final assembly moves to another third world or developing country, like India, Indonesia, Philippines... to get around the tax. And if it's just the final assembly, China wouldn't loose much of it.

They already have in Brazil.

And since it is a new line of products and they would be starting to build the line 18 months before the new consoles they could make it happen.

Avro1958 said:
It is true that China steals tech, but one can't just sit back and assume they are the only country to do so... I think China is many cases is unjustly made the villain. To many people assume western business are always so innocent and the victim... we also have a strong history of stealing and spying or unjustly influencing other companies. It's just funny we accuse others of what we ourselves do and somehow that's ok.

Yes company will steal from one another. The problem with China is that their law don't even care about IP steal.