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

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

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.



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KLXVER said:
Bofferbrauer2 said:

At 25%, I think it's quite a bit more than most other country. They did stomach the 10%, but I don't think they'll be able to do so with 25%, and will have to raise the prices - or not cut them in the US when everywhere else the prices go down.

Btw, the EU has 0% tariffs on Videogame consoles: https://madb.europa.eu/madb/euTariffs.htm?productCode=950450&country=CN

Yet we pay more. I would love to have a 300$ Switch for example.

Edit: Actually the dollar is pretty strong right now, so its not that much of a difference.lol

Yeah, and our price in Europe includes VAT. Add VAT on US consoles and they're more expensive in the US anyway.



So you do not think it is wrong for companies to not employ within their own home nation? Just a friendly question.



Will just be temporary at at the end China will win the trade war.



SpokenTruth said:

China isn't isolated.  They are an export based economy.  They need external markets to function.  Much like a tourism based market such as Florida.  It can't operate in a vacuum.  China is built around exporting.  While it's internal markets are certainly growing (and have exceeded the US in PPP), it cannot sustain itself.  


Oh, and China is blocking Google (search, Drive, Gmail, Docs) and Facebook but notice they don't block Microsoft (Bing search, OneDrive, Outlook, Office) or Yahoo (search, email).  That suggests blocking has more to do with making deals with China than being isolationists.  By the way, did you know Yahoo owns a large stake (40% at one time) in the Chinese mega-corporation Alibaba?  You think that might have something to do with why Google is banned or is just being isolationist and that's just coincidence?

You underestimate China if you think they can't both thrive and be isolated. They are currently an export based economy but that is changing fast and to accommodate that future as well they are regaining their technological independence by working around the clock from 9AM to 9PM at 6 days a week to achieve just that. China can and will die trying to operate in a vacuum since that's their ultimate goal. Once they are in control of their whole chain of productivity, they will dump America for good ... (every once in a while they'll observe America's latest innovations and reverse engineer it but other than that China's industries will be nearly self-sufficient) 

Why else does the CCP keep holding those "five-year plans" and executing on it ? Do you think China are somehow all just fun and games ? South Korea won't have much of a future if state subsidized Chinese firms such as BOE (specializing in small/flexible OLED displays) and YMTC (specializing in NAND memory) will threaten Samsung's bread and butter ... 

Access between American and Chinese markets are hardly reciprocal. More often than not, China will make a coordinated effort to hobble American business operations in China. Don't be mistaken, China is definitely more isolationist than we imagine ... 



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So, if the consoles that are sold in my country are imported from the U.S.A, does it mean they'll also be more expensive here?



Let's be clear, this trade war is all on trump. America was the aggressor just like it is on Venezuela and Iran and 1as in iraq, Afghanistan, Syria etc etc. These news articles always make it seem like both parties are equally at fault or many a times the people on the opposite side of the US are at fault but the reality is that the US has been the aggressor everytime for decades now. And gaming will suffer because of the stupidity of their leader. As if I needed another reason to hate the US government.



Just a guy who doesn't want to be bored. Also

SpokenTruth said:
Keybladewielder said:

So, if the consoles that are sold in my country are imported from the U.S.A, does it mean they'll also be more expensive here?

Does Antarctica import directly from China or is there a stop in the US first?

All jokes aside, this only applies to US citizens.  Tariffs are an import tax.  It is applied to products imported from the target country (China in this case).  That means any company that imports Chinese good will get hit with a 25% tax on those products.  And of course they will pass those taxes onto consumers because that's how business works.

Now, as your question is asking, if you happen to live in a country that does indirect importing (say a product from China is imported into the US first and then exported out to your country), then you will also suffer the increased costs as well.

Oh, I see , I really hope this tax doesn't end up being approved, consoles are already too expensive here.



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.



1doesnotsimply

Impeach!