Gaming Hardware Prices Might Skyrocket Due to Proposed US Tariffs On Foreign Semiconductors
U.S. President Donald Trump has recently reiterated his plans to impose tariffs, of up to a 100 percent tax, on foreign semiconductors. On the campaign trail, Trump had promised these kinds of tariffs, but only now does his administration seem to be taking more concrete steps to implement them. Or at the very least, Trump himself seems about ready to take action.
While the goal of these proposed tariffs is to encourage more production of computer chips and semiconductors within the United States, it is the consumer that would likely have to pay for the increase in prices in the immediate future. The gaming industry, in particular, would get hit heavily by these potential changes. Everything from the Nintendo Switch 2 to all different kinds of GPUs could see their prices skyrocket to unprecedented levels.
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The PlayStation 5 Pro currently has a $699.99 USD MSRP. The general reaction to that revelation was total outrage. Understandably so, because, in this current market, building a gaming PC at around that price range would offer much better value. With President Trump’s proposed tariffs, though, neither option would be anywhere near cost-efficient. Gaming consoles and their general audience would really suffer, as the entry point into gaming would get much higher.
The Nintendo Switch 2 is going to come out at a really inopportune time if these tariffs successfully get implemented. Just about all forms of gaming hardware will end up impacted by these tariffs. TSMC’s technology can be found in the majority of modern high-performance gaming hardware. Samsung is another important company for many gaming devices. Trump’s tariffs would be inescapable throughout the industry.
Exactly how much prices could increase would depend entirely on what the Trump administration deems an appropriate tax on all these imports. No matter what that ends up being, all parties involved would be losers should this come to pass. The United States may have something to gain in the long term, but nothing suggests that foreign companies will bend to the country’s will.
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Tariffs have become one of the Trump administration’s favorite tools. In lieu of negotiation, immediate pressure on companies from outside the country may seem like an effective tactic. Perhaps that might be the case, but consumers are the ones who are going to pay dearly for these tactics.
It simply is not realistic to expect a major shift in how companies like TSMC manufacture everything. It’s going to take a long time for them to move more of their manufacturing over to the United States. On the other hand, it’s going to take just months for prices within the gaming industry to skyrocket.
Source: VICE
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