Nintendo, Sony, and Microsoft issue joint statement against tariff proposed by Trump administration

Nintendo, Sony, and Microsoft have issued a joint statement the 25% tariff proposed by the  Trump administration against Chinese goods.

In the joint statement made, the companies highlight the impact and undue economic harm the proposed tariffs on video game consoles "would have on the entire video game ecosystem."

According to the statement sent to Joseph Barloon, general counsel to the US Trade Representative (USTR), the tariff could not "stifle innovation," but the 25% tariff could result in loss of industry employment, and harm consumers and retail in the process.

"While we appreciate the Administration’s efforts to protect US intellectual property and preserve US high-tech leadership, the disproportionate harm caused by these tariffs to US consumers and businesses will undermine—not advance—these goals," reads the joint letter.

"Accordingly, we respectfully request that the Administration remove HTSUS subheading 9504.50.00, covering video game consoles, from the final list of tariffs, and thus refrain from applying tariffs on these products."

It goes on to state because consoles are a specialized product with a "complex supply chain." In 2018, over 96% of video game consoles imported into US were made in China.

"Each video game console comprises dozens of complex components sourced from multiple countries. A change in even a single supplier must be vetted carefully to mitigate risks of product quality, unreliability and consumer safety issues," it reads.

"Tariffs would significantly disrupt our companies’ businesses and add significant costs that would depress sales of video game consoles and the games and services that drive the profitability of this market segment."

In May, a document published by the USTR listed goods coming from China which would be affected by a tariff of up to 25% . This means in relation to videos games, tech such as consoles and peripherals would be subject to the "tax".

The tariff meetings began on June 17.

You can read the joint statement made by Nintendo, Sony, and Microsoft here [PDF].