"Trump Tariffs, Young Male Gamers Are the Ones Paying the Price"

US Video Console Game Culture Highly Dependent on China
Tariff Implementation to Impact Young Male Trump Supporters

Analysis suggests that former President Donald Trump's tariff pledge could economically impact his key supporter base of young male gamers.

On the 3rd (local time), Yahoo Finance reported, "If former President Trump imposes a 60% tariff on Chinese imports as promised, major Chinese exports such as video game equipment will not be spared," adding, "The biggest impact will be on young American men, who are a primary voter base courted by the Trump campaign."

[Image source=Getty Images Yonhap News]

The United States, where video console gaming culture is well established, is highly dependent on China. According to a report by the bipartisan think tank Tax Policy Center (TPC), last year the U.S. imported $32 billion (approximately 44 trillion won) worth of toys including video games from China, ranking third among import categories. Although some game equipment manufacturers relocated to Vietnam and Mexico during the pandemic, as of 2022, the U.S. still imports 90% of its console equipment from China.

Experts predict that if former President Trump's tariffs on China are implemented, the price of gaming equipment could rise by up to 45%. Luis Ward, head of game research at IT information provider IDC, stated, "Unless companies want to earn less money, they will pass the costs caused by tariff increases onto customers," and analyzed, "Tariffs will erode the gaming market."

The issue is that most male voters under 50 targeted by the Trump campaign are gamers. According to the Entertainment Software Association (ESA), 82% of American males aged 12 to 27 and 74% of males aged 28 to 43 play video games for at least one hour per week. The media noted that overall, 61% of American households enjoy video games.

Former President Trump believed that higher tariffs would encourage companies to build factories in the U.S., limiting the impact of tariffs, but experts point out that reality may differ. It takes years for manufacturing bases that moved overseas to return to the U.S., and companies must search for suitable factory sites, obtain construction permits, and invest substantial funds to operate.

Michael Pachter, managing director at Wedbush Securities, said, "About $2 billion worth of video console equipment is subject to tariffs," and evaluated, "Companies will produce low-margin equipment like game controllers in Southeast Asia, such as Vietnam, rather than the U.S., and about 10% of the tariff cost will be passed on to consumers."