President Donald Trump’s proposed 25% tariff on imports from Mexico and Canada, expected to take effect on February 1, could significantly impact the U.S. gaming market, experts warn. This executive order, discussed shortly after Trump’s inauguration, has sparked concerns about higher prices and fewerphysical game releases.
Mexico and Canada rank among the United States' top three trade partners, collectively accounting for 30% of the total value of U.S. imports last year, according to federal trade data. If these tariffs are implemented, they could strain Americans' wallets, as retailers are unlikely to absorb the full cost increases. For example, Trump’s proposed tariffs couldsignificantly raise the price of the Nintendo Switch 2. Industry insiders have voiced concerns about potential price hikes, citing uncertainty over how tariffs might impact the console’s classification and cost. While President Trump claims that foreign exporters will bear the brunt of the tariffs, a portion of the burden will inevitably fall on U.S. consumers.
Industry experts are particularly concerned about the ripple effects onthe video games market. Mat Piscatella, Circana Executive Director and Video Game Industry Analyst, predicts a “sharp downtick” in the number of physical game releases in the United States. Much of the production infrastructure for these games is based in Mexico, and a 25% tariff would disrupt supply chains, increasing manufacturing costs. As a result, retailers may raise prices on both physical and digital games to maintain price parity. “If physical game prices go up, digital games’ MSRPs will likely follow,”Piscatella noted in a recent discussion on Bluesky. He expressed doubts about any positive outcomes for the physical game market in the near future.
Trump’s Mexico Tariffs May Hike Video Game Prices
Some retailers are already taking steps to mitigate the impact of potential tariffs. Strategies include stockpiling goods and shifting production away from tariff-affected regions. However, these measures are not a long-term solution. Many products, particularly those requiring specialized production, cannot be easily relocated or stockpiled in significant quantities. The proposedtariffs threaten to reshape the video games marketin the U.S., making it more expensive for gamers and potentially limiting access to physical releases. As the February 1 deadline approaches, industry stakeholders and consumers alike are bracing for the potential fallout of these sweeping trade changes. Whether it’s through higher prices, fewer options, or both, the video games market is unlikely to emerge unscathed.
This news follows growing concern among fans thatTrump’s presidency could delayGrand Theft Auto 6’s release. Fans, who have been waiting over a decade, fear the game could face obstacles tied to Project 2025, a controversial initiative by the Heritage Foundation. While Trump has distanced himself from the project, its language suggests possible censorship of video games and media. Given the violent and mature content typical of theGTAseries, some worry it could become a target if the initiative’s proposals were enacted.
