Tariffs Would Eat the Video Game Industry, Entertainment’s Biggest Sector

President Donald Trump’s 25-percent tariffs against Mexico, Canada, and increased tariffs against China by an additional 10 percent has industry in an uproar. And his pledge to target Europe next, the greatest trading hub in the world, doesn’t help. 

Across the country, people are divided and vexed: Is this just Trump’s “art of the deal” at work? Is he trying to force negotiations with these countries to benefit the United States and scale back on tariffs once his objectives are achieved, or is he starting a global trade war out of a firm belief that tariffs actually work? 

Among the throng of worried industries that stand to suffer from tariffs is a group that probably doesn’t spring immediately to mind when you think about the effect of tariffs will have on Americans, but that nevertheless represents quite a large percentage of the country: gamers.

We typically think of tariffs in terms of food and produce, which affect everyone, and neglect some of the other sectors that might be heavily impacted by Trump’s trade wars. But the video game industry is no niche operation. In fact, around 190 millionAmericans aged 5-90 are gamers. That is nearing half of the country’s total population. 

Over 60% of Americans report playing a video game at least once a week. Whether it’s Minecraft or Candy Crush, video games are a major source of entertainment for Americans of all ages.

The video game’s $184 billion-dollar industry is larger than both the music and film industries combined, as measured by market size. In 2024 U.S. video game sales reached $58.7 billion compared to $8.7 billion in movie box office sales. As the DOGE-in-chief Elon Musk might quip, “Let that sink in!”

The relative healthiness of video games as a national pastime is, of course, up for lively debate. But one can’t deny that the video game industry is economically lucrative, culturally influential, and a wellspring of technological innovation. 

The video game industry will be heavily impacted by Trump’s tariffs, and gamers are right to be upset. 

Tariffs on video games and related products would be felt quickly. The Consumer Technology Association reports that video game console prices could see a 40-58% uptick. In short, tariffs would limit Americans’ ability to access video games, significantly damaging the industry. It could also lead to job loss and would entail real economic deprivation for the United States. If we look at how much money video games rake in for the country, we would be sorely remiss to put a tax on their entry. 

President Trump may be trying to leverage deals with our trade partners, but policymakers need to be realistic and look at the harm such measures would do to everyday Americans. Also, the “tooth for a tooth” maxim rings true when it comes to imposing import tariffs. Other countries have already put retaliatory measures against the United States. We punched first, and they punched right back. The tariffs against Mexico and China are especially concerning for gamers since a high percentage of consoles and video game-related products come from these countries. 

The costs of placing these restraints on one of the fastest-growing industries in the world clearly outweigh the benefits. We should not punish a form of trade that so evidently drives jobs and innovation — and which produces such a culturally valued form of entertainment. For a president who wants to usher in the next “golden age” of America, he needs to support the blooming golden age in the entertainment sector. The video games market supports America and connects the country to the rest of the world. Make trade free again, Mr. President.