Let's put this to bed finally: There are no US import tariffs on Videogame Consoles

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In the PS5 price increase thread there are pages and pages of people repeating the same misinformation ad nauseum, i.e. that Trump tariffs are to blame for the PS5 US price increase and the semi-recent price increases of other consoles.

It's just not true!

I'm not a republican. I'm not even American. But I know how to use Google and the US provides a handy website where you can go and find out what all the current tariffs are for various products you can import into the US:

The Harmonized Tariff Schedule of the United States (HTS) ---- https://hts.usitc.gov/

To save you all time, you can see under the heading 9504.50.00, videogame consoles under "rates of duty" show "free" under the general category (section 1). Meaning that there are no tariffs on vg consoles imported into the US from countries that are not Russia, North Korea and Belarus (the section 2 category covers these three sanctioned countries subject to import controls).

So, please GAF hypothesize all you like about the reasons why Sony and MS are increasing console prices, just know it has nothing to do with import tariffs.

The real culprit you should be looking at is TSMC, who now that Intel is cooked and Samsung and Global Foundries have been left in the dust, has a virtual monopoly on high performance semiconductor parts fabrication; and they have been increasing their prices because their can and will exploit their current market position.

Edit:

It seems the above does not give the full picture and consoles from China and Taiwan are in fact subject to US import tariffs. What also is clear, however, is that Sony has made moves to relocate their console assembly operations for consoles sold in the US (to where, I don't know). So, these recent pricing adjustments are very likely a result of at least in part the added costs of their new supply chain. I still insist that TSMC's monopoly is a factor in addition, since wafer pricing has seen successive increases for all their most advanced process nodes.
 
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Phew! Glad you put this topic to sleep sir, I have zero doubts GAF will ever bring it up again

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All computing devices are affected directly, or in this case indirectly by the tariffs. Their component costs go up so the prices go up. It's pretty simple.
How does that make sense for the US? PlayStation consoles aren't manufactured in the US, nor are their components bought there and shipped off to the manufacturing countries. I don't see a way for them to be impacted by the tariffs.
 
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I don't get this either. If the product category as a whole is explicitly excluded, and every single component is made outside the US (which is the case) and then imported as a complete device, then why should there be tariffs?
 
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While there are a lot of additional factors that are causing price increases (like the general inflation of the US dollar), tariffs are absolutely contributing greatly to these price increases.

I'm currently manufacturing gaming hardware right now for my job, and component prices are being drastically affected by the tariffs. I need to purchase and secure components before entering manufacturing, and that alone is affecting my per unit cost by over 20% compared to last year. Even when manufacturing is relocated to countries like Vietnam (in the case of the PS5), many suppliers have raised their prices to cover their tariff risk in the last few months, not to mention the additional logistics needed in some manufacturing now. The import tariff may not be on the final console, but there are a myriad of upstream costs that ripple into the final MSRP.

I'm happy to dive into more specifics, but this is an extremely surface-level take on a complex issue. And I'm not trying to be rude, OP, but you're just completely wrong about this. Tariffs are not the only reason for the price increases, but they are certainly a significant factor.
 
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I like the posters saying what did you expect from Sony it's trumps fault, meanwhile the prices for the rest of the world under no impact of tariffs at all have all had their prices rise over the past 12 months more than the US.
 
How does that make sense for the US? PlayStation consoles aren't manufactured in the US, nor are their components bought there and shipped off to the manufacturing countries. I don't see a way for them to be impacted by the tariffs.

I'm no expert, but isn't it just that if a country collects over $100 billion in tariffs, hitting a company's profits, then the company are going to pass that cost on to the consumers from that country. Sony PS5s don't exist in a vacuum - they are affected by all the other Sony products as well.
 
While there are a lot of additional factors that are causing price increases (like the general inflation of the US dollar), tariffs are absolutely contributing greatly to these price increases.

I'm currently manufacturing gaming hardware right now for my job, and component prices are being drastically affected by the tariffs. I need to purchase and secure components before entering manufacturing, and that alone is affecting my per unit cost by over 20% compared to last year. Even when manufacturing is relocated to countries like Vietnam (in the case of the PS5), many suppliers have raised their prices to cover their tariff risk in the last few months, not to mention the additional logistics needed in some manufacturing now. The import tariff may not be on the final console, but there are a myriad of upstream costs that ripple into the final MSRP.

I'm happy to dive into more specifics, but this is an extremely surface-level take on a complex issue. And I'm not trying to be rude, OP, but you're just completely wrong about this. Tariffs are not the only reason for the price increases, but they are certainly a significant factor.

None of the console components are made in the US. So how can they possibly be impacted by the tariffs?

The console parts are made from raw materials that are all sourced and manufactured locally within China. China is not importing anything from the US that goes into a console.

The US is not putting tariffs on console components when they don't put any on the console. They actually want companies to import components and do the assembly inside the US; creating US jobs. So, it makes no logical sense to not tariff consoles but tariff upstream components as that forces existing game console manufacturers who do some assembly in the US to move those jobs outside the country.... that's literally the opposite of what the Trump administration is trying to achieve.

I'm sorry, I don't buy that consoles are affected by tariffs. You haven't presented any meaningful argument as to why they would be. Your argument boils down to, "trust me, bro". Sorry, I don't.
 
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Im just gonna say this, ps5pr0 in the US after price hike- 750usd
In poland(we are EU members)- official price is 3499pln aka 966 usd(some retailers sell bit cheaper coz our price is above for example german price so they selling us for example ps5pr0s bought from german retail stores ;p ), yes thats after tax but its still more expensive vs US ps5pr0 if u include tax...
US still has cheaper price, and they had access to 700$ ps5pr0 from launch so for over 6 months already, all enthusiasts who wanted already got that console by now, for 700 usd.
 
Computer and console prices may not be affected by tariffs. To be honest, I don't know enough about that.

But computers and consoles, and tech in general, don't develop in a vacuum. There are many distributors, retailers, and collaborations for the individual components and where they are manufactured.
I think the topic is simply too opaque, and there are far too many players involved to be able to make a clear and definitive statement.
 
Computer and console prices may not be affected by tariffs. To be honest, I don't know enough about that.

But computers and consoles, and tech in general, don't develop in a vacuum. There are many distributors, retailers, and collaborations for the individual components and where they are manufactured.
I think the topic is simply too opaque, and there are far too many players involved to be able to make a clear and definitive statement.

Everything that goes into these consoles which are assembled in Taiwan, is made locally in mainland China. China is the lagest manufacturer of raw materials in the world. They are absolutely not importing anything from the US that finds its way into the final console.

So, no. US tariffs are not affecting Sony, MS or Nintendo games consoles.
 
It's just not true!

I'm not a republican. I'm not even American. But I know how to use Google and the US provides a handy website where you can go and find out what all the current tariffs are for various products you can import into the US:
Might want to scrub up on those google skills, or even better query wtf the column 2 means through AI.

So the answer is:

  • 9504.50.00 consoles are "Free" under the normal tariff schedule.
  • But if they're imported from China (where most are made), they are subject to the 35% additional duty under Section 301 (Heading 2 tariffs).
  • That's why Sony, Microsoft, and Nintendo can't avoid price hikes — unless they move production to a non-tariffed country (like Malaysia, Mexico, or India).
 
I'm no expert, but isn't it just that if a country collects over $100 billion in tariffs, hitting a company's profits, then the company are going to pass that cost on to the consumers from that country. Sony PS5s don't exist in a vacuum - they are affected by all the other Sony products as well.
The tariffs are paid by the country imposing the tariffs, not by the ones selling/exporting the product. For instance, if an American company buys steel from China with a 20% tariff, said company will pay 20% more and will indeed pass the cost onto the customer. In PlayStation's case, however, consoles aren't subject to tariffs, nor are their components, so the price hike being related to tariffs is contentious at best as there is no causal link between the two.
 
Might want to scrub up on those google skills, or even better query wtf the column 2 means through AI.

So the answer is:

  • 9504.50.00 consoles are "Free" under the normal tariff schedule.
  • But if they're imported from China (where most are made), they are subject to the 35% additional duty under Section 301 (Heading 2 tariffs).
  • That's why Sony, Microsoft, and Nintendo can't avoid price hikes — unless they move production to a non-tariffed country (like Malaysia, Mexico, or India).

Your AI is wrong.

Hover over the "Rates of Duty" "i" symbol next to the heading and the countries listed under section 2 are Cuba, N. Korea and Belarus.

Section 2 does NOT apply to China.

You're wrong.
 
In the PS5 price increase thread there are pages and pages of people repeating the same misinformation ad nauseum, i.e. that Trump tariffs are to blame for the PS5 US price increase and the semi-recent price increases of other consoles.

It's just not true!

I'm not a republican. I'm not even American. But I know how to use Google and the US provides a handy website where you can go and find out what all the current tariffs are for various products you can import into the US:

The Harmonized Tariff Schedule of the United States (HTS) ---- https://hts.usitc.gov/

To save you all time, you can see under the heading 9504.50.00, videogame consoles under "rates of duty" show "free" under the general category (section 1). Meaning that there are no tariffs on vg consoles imported into the US from countries that are not Russia, North Korea and Belarus (the section 2 category covers these three sanctioned countries subject to import controls).

So, please GAF hypothesize all you like about the reasons why Sony and MS are increasing console prices, just know it has nothing to do with import tariffs.

The real culprit you should be looking at is TSMC, who now that Intel is cooked and Samsung and Global Foundries have been left in the dust, has a virtual monopoly on high performance semiconductor parts fabrication; and they have been increasing their prices because their can and will exploit their current market position.

Ehmm ... no.

You're right there are no tariffs specifically for video consoles, but there are tariffs on all goods form specific countries through separate Chapter 99 additional duties that's charged on top of the base rate, even when the base rate is zero. Sony manufactures PS5 consoles in either Japan (15% tariff) or China (10%). There's no tariff exemption for video consoles, so of course Sony will be impacted by tariffs.

On the other hand, Japan was first hit by a 24% tariff and China with various tariffs up to 135% at one poit and that was decreased to 10%, less than Japan's. So in effect imported consoles from either China or Japan should cost less now than a few months earlier.
 
Everything that goes into these consoles which are assembled in Taiwan, is made locally in mainland China. China is the lagest manufacturer of raw materials in the world. They are absolutely not importing anything from the US that finds its way into the final console.

So, no. US tariffs are not affecting Sony, MS or Nintendo games consoles.
That would mean Sony is deliberately raising prices and in effect falsely blaming it on the current US administration because of Sony management's political affiliations. Sounds like a stupid game to play.
 
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Your AI is wrong.

Hover over the "Rates of Duty" "i" symbol next to the heading and the countries listed under section 2 are Cuba, N. Korea and Belarus.

Section 2 does NOT apply to China.

You're wrong.

Let's ask ChatGPT in that case:

In the U.S., video-game consoles are classified under HTSUS 9504.50.00 with a base (MFN) duty rate of 0%. That "duty-free" classification only sets the base rate. The new 15% "reciprocal" country surcharge on Japanese-origin goods is a separate Chapter 99 additional duty that's charged on top of the base rate, even when the base rate is zero. So a Japan-made PS5 entered into U.S. commerce is dutiable at 15% ad valorem (plus MPF/HMF), unless a specific exclusion applies or you qualify for a special program that changes valuation. Harmonized Tariff ScheduleThe White House

Two key cites:
  • HTSUS shows 9504.50.00 "video game consoles and machines" with a general duty rate of Free. Harmonized Tariff Schedule
  • The White House Executive Order annex lists Japan under 9903.02.30 with "the duty provided in the applicable subheading + 15%," which is how the surcharge is imposed regardless of the base rate. The White House

(If you were importing into the EU instead, there isn't a blanket 15% surcharge on Japan, and consoles under CN 9504.50.00 are typically 0% duty—you'd still owe VAT. But your U.S. question: the duty-free classification does not negate the 15% U.S. surcharge.) Examine China
 
Let's ask ChatGPT in that case:

In the U.S., video-game consoles are classified under HTSUS 9504.50.00 with a base (MFN) duty rate of 0%. That "duty-free" classification only sets the base rate. The new 15% "reciprocal" country surcharge on Japanese-origin goods is a separate Chapter 99 additional duty that's charged on top of the base rate, even when the base rate is zero. So a Japan-made PS5 entered into U.S. commerce is dutiable at 15% ad valorem (plus MPF/HMF), unless a specific exclusion applies or you qualify for a special program that changes valuation. Harmonized Tariff ScheduleThe White House

Two key cites:
  • HTSUS shows 9504.50.00 "video game consoles and machines" with a general duty rate of Free. Harmonized Tariff Schedule
  • The White House Executive Order annex lists Japan under 9903.02.30 with "the duty provided in the applicable subheading + 15%," which is how the surcharge is imposed regardless of the base rate. The White House

(If you were importing into the EU instead, there isn't a blanket 15% surcharge on Japan, and consoles under CN 9504.50.00 are typically 0% duty—you'd still owe VAT. But your U.S. question: the duty-free classification does not negate the 15% U.S. surcharge.) Examine China

All the console are manufactured and assembled by Foxconn based in Taiwan. They are not made in Japan.

Also, the surcharge isn't new and has always been in place for US imports.
 
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That would mean Sony is deliberately raising prices and in effect falsely blaming it on the current US administration because of Sony management's political affiliations. Sounds like a stupid game to play.
OP is contending that TSMC is to blame, not Sony. If TSMC raises their wafer costs, then these will be passed onto the consumers. The companies buying from TSMC can either absorb the additional costs or make us absorb them, and guess what usually happens?
 
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All the console are manufactured and assembled by Foxconn based in Taiwan. They are not made in Japan.

Also, the surcharge isn't new and has always been in place for US imports.

The main chip in the PS5 is manufactured by TMSC in Taiwain, but that's just one component. The product as a whole is assembled either in Japan or China.
------------------------------

Sony's PlayStation 5 (PS5) manufacturing is a globally distributed operation. Here's how it breaks down as of the most recent information:




Primary PS5 Manufacturing: China


  • Main assembly hub: The vast majority of PS5 consoles are assembled in China, leveraging Sony's partnerships with major electronics contractors like Foxconn and Pegatron. These factories in cities like Yantai, Shenzhen, Shanghai, and Hengyang are the backbone of global PS5 production Marketing ScoopExpert Beaconps5perspective.com.
  • Scale of production: Estimates indicate that over 90% of PS5 units (and even more for the PS4) originate from China, thanks to the country's massive manufacturing capacity and supply chain infrastructure Marketing ScoopExpert Beacon.



Supplementary Manufacturing: Japan & Components


  • Japan's role: While China handles volume, Japan remains important for quality control, advanced automation, and domestic production. Facilities like the Kisarazu plant represent the pinnacle of manufacturing precision Which ProxiesSplicedOnlineExpert Beacon.
  • Component fabrication: Critical PS5 parts such as the AMD chipsets are produced in Japan and Taiwan, primarily through TSMC and related partners consoleverse.com.



Past Diversification & New Shifts


  • Other regions: Malaysia is a significant contributor especially for electronic components and semiconductors, assisting in the supply chain Which Proxiestechlogging.com.
  • Tariff-driven changes: In August 2025, Sony announced it diverted PS5 production destined for the U.S. market out of China, in response to steep U.S. tariffs on Chinese electronics. This strategic realignment means that consoles sold in the U.S. are now manufactured elsewhere—though Sony hasn't publicly disclosed the destination countries yet TwistedVoxel.
 
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You're wrong.

Nope, tariffs apply.

edit: also as usual if you don't prompt AI enough it gives shit results, but it got there in the end with a source that is comprehensive.
 
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That would mean Sony is deliberately raising prices and in effect falsely blaming it on the current US administration because of Sony management's political affiliations. Sounds like a stupid game to play.
I don't think Sony has made any mention of the US administration for the reason for the price increase.

They've increased prices almost everywhere outside of the US too.
 
I don't think Sony has made any mention of the US administration for the reason for the price increase.

They've increased prices almost everywhere outside of the US too.
They have mouthpieces in games media, and those have all been screaming tariffs in unison, have to assume that's Sony's internal attitude if their marketing arms pump the message.
 
That would mean Sony is deliberately raising prices and in effect falsely blaming it on the current US administration because of Sony management's political affiliations. Sounds like a stupid game to play.

Not just sony, but just about everyone else is using all kind of excuses to raise prices since covid.

Just look at their financial reports, profits quarters after quarters
 

Nope, tariffs apply.

edit: also as usual if you don't prompt AI enough it gives shit results, but it got there in the end with a source that is comprehensive.

Yep. In my case ChatGPT got it wrong at first, you have to literally prompt it to "think harder". Now you don't get an answer in a few seconds, it took the AI more than 2.5 minutes to answer my original question now. Huge difference in response quality.
 
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Not just sony, but just about everyone else is using all kind of excuses to raise prices since covid.

Just look at their financial reports, profits quarters after quarters
Sure, but the fact that Sony isn't American like Xbox/MS will probably piss some people off more. Makes them come off as a foreign element deliberately sabotaging US efforts for profit while utilizing its media reach to influence internal US politics. Did Hulst think all this shit through? (Do you see how quickly OP's narrative turns out very badly?)
 
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All the console are manufactured and assembled by Foxconn based in Taiwan. They are not made in Japan.

Also, the surcharge isn't new and has always been in place for US imports.
Google Gemini states that while Foxxcon is based in Taiwan, actual production for PS5 happens in mainland China.

"Foxconn, a Taiwanese company, is a major manufacturer for Sony, but the majority of its large-scale electronics assembly, including for the PlayStation 5, takes place at its factories in mainland China.

Here's a breakdown:

Headquarters and R&D in Taiwan: Foxconn (officially Hon Hai Technology Group) is headquartered in Taiwan. It's a Taiwanese company with its core leadership and some facilities located there.
Manufacturing Hub in China: Foxconn's largest and most famous factories, often referred to as "Foxconn City" in places like Shenzhen, are in China. These massive facilities are where products like the PlayStation, iPhones, and other consumer electronics are mass-produced. The scale of production in these locations is immense, making them ideal for meeting the high demand for products like the PS5.
"
 
actual production for PS5 happens in mainland China
I think its actually been moved, but all that has done is insulate them from super tariffs, not from these so called reciprocal tariffs which are at a minimum of 10% regardless of country. For example they have moved them to Vietnam, which is overall 20% vs China 30%.

Of course the really big issue is no one knows wtf this guy will do when he gets up each day. Plays havoc with planning, business craves certainty, which is the most damaging part of all this.
 
Ehmm ... no.

You're right there are no tariffs specifically for video consoles, but there are tariffs on all goods form specific countries through separate Chapter 99 additional duties that's charged on top of the base rate, even when the base rate is zero. Sony manufactures PS5 consoles in either Japan (15% tariff) or China (10%). There's no tariff exemption for video consoles, so of course Sony will be impacted by tariffs.

On the other hand, Japan was first hit by a 24% tariff and China with various tariffs up to 135% at one poit and that was decreased to 10%, less than Japan's. So in effect imported consoles from either China or Japan should cost less now than a few months earlier.
Aren't the tariffs imposed by the US on Chinese products 30%? (If they didn't agree, it was 54%)

The new deadline is November 10th, during which time the two countries will continue their negotiations. During this time, the 20% additional tariffs aimed at preventing the inflow of illegal drugs under the US International Emergency Economic Powers Act (IEEPA) and the 10% baseline tariff will continue to be applied to imports from China (a total of 30%). Depending on the item, additional tariffs may also be imposed under Section 301 of the Trade Act of 1974, which was put into effect during the first Trump administration.
 
Ehmm ... no.

You're right there are no tariffs specifically for video consoles, but there are tariffs on all goods form specific countries through separate Chapter 99 additional duties that's charged on top of the base rate, even when the base rate is zero. Sony manufactures PS5 consoles in either Japan (15% tariff) or China (10%). There's no tariff exemption for video consoles, so of course Sony will be impacted by tariffs.

On the other hand, Japan was first hit by a 24% tariff and China with various tariffs up to 135% at one poit and that was decreased to 10%, less than Japan's. So in effect imported consoles from either China or Japan should cost less now than a few months earlier.
But have these been imposed by Trump or they've always been around?
 
All computing devices are affected directly, or in this case indirectly by the tariffs. Their component costs go up so the prices go up. It's pretty simple.
Any way anyone wants to spin it, is non sensical. We had the 2008 recession, where everything went tits up yet we never get price increases. They are trying to sell you a 5 year old console for more lol. By now the base PS5 should of been $350 at best, its literally reaching its end of life cycle and got 2 price increases. What happened when companies sold consoles at a loss because the software was going to fill that gap? Oh wait...now tell me how we have amazing gaming output this year.
 
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But have these been imposed by Trump or they've always been around?
Trump is the tariff guy, some are holdovers from his first time which were kept in place by Biden. Real hard to turn off sources of income when they are started, I imagine a change in administration wouldn't necessarily remove tariffs in the future, but it probably would normalise them somewhat and stop the more egregious world trade violations..... Meh, tariffs always do more damage to the host country anyway, its not black and white, you get winners and losers, but in aggregate the tariffing country always goes backwards.

Its just a GST/VAT with a different name thats not as fair and distorts production in inefficient ways. It amazes me that education is so low in the US some people actually still believe the tariff is paid by the shipping country. It is true that corporations can spread the pain and try and eat costs in the US by increasing margins elsewhere, but the tax is very much paid at the pump so to speak in the US.
 
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Aren't the tariffs imposed by the US on Chinese products 30%? (If they didn't agree, it was 54%)

The new deadline is November 10th, during which time the two countries will continue their negotiations. During this time, the 20% additional tariffs aimed at preventing the inflow of illegal drugs under the US International Emergency Economic Powers Act (IEEPA) and the 10% baseline tariff will continue to be applied to imports from China (a total of 30%). Depending on the item, additional tariffs may also be imposed under Section 301 of the Trade Act of 1974, which was put into effect during the first Trump administration.

10% is the rate according to section on China in the Wikipedia article

------------------


On May 12, officials from the US and China agreed to drastically reduce for 90 days the tariff rates, from 145% to 30% and 125% to 10% respectively, while further negotiations are held.[273] The US also cut tariffs on Chinese shipments valued below the de minimis threshold of $800 from 120% to 54%.[208] On June 11, Trump declared the trade deal "done", although China downplayed the deal as a framework representing the "first meeting".[274]

A proposed US sanctions bill in early July threatened a 500% tariff on countries that traded with the Russian Federation, including China, proposed by US Senator Lindsey Graham.[275]

In July 2025, Bloomberg News reported that Trump has softened his hardline tone on China to ensure a summit with General Secretary of the Chinese Communist Party Xi Jinping, aiming to push for a trade agreement between America and China.[276]

On July 29, US and China had agreed to extending a pause in tariffs for 90 days.[277]
 
None of the console components are made in the US. So how can they possibly be impacted by the tariffs?

The US is not putting tariffs on console components when they don't put any on the console. They actually want companies to import components and do the assembly inside the US; creating US jobs. So, it makes no logical sense to not tariff consoles but tariff upstream components as that forces existing game console manufacturers who do some assembly in the US to move those jobs outside the country.... that's literally the opposite of what the Trump administration is trying to achieve.

I'm sorry, I don't buy that consoles are affected by tariffs. You haven't presented any meaningful argument as to why they would be. Your argument boils down to, "trust me, bro". Sorry, I don't.

In good faith, I'll try to respond.

Sony and Nintendo recently moved their manufacturing to Vietnam specifically to mitigate tariff risk. Part of the game is mitigating risk through price adjustment in the world of Trump's drastically unstable tariff policies.

The logistical change, alone, has also increased production costs (especially in the relative short term), so shifting production to Vietnam means higher labor and less efficient supply chains, plus the constant threat of new tariffs forces companies to price in risk. And this is just in considering the final import for the console. Additional components, accessories, marketing materials, internal R&D costs, etc. can still be directly affected by the tariffs. This means that Sony's bottom line is damaged from a number of different vectors, and they adjust the pricing on their products across the board to mitigate that damage.

So while the finished console technically comes in duty-free under U.S. import codes, the entire chain leading up to that point becomes more expensive. We don't have access to that specific data, but I have access to the data from my company in producing gaming hardware that is manufactured outside of the US, which is largely where I'm drawing these comparisons.

But even if we don't have access to Sony's exact pipeline, you can't just magically pretend it doesn't exist. You still have to factor those variables in if you're going to make such a black and white claim.

I'm not a republican. I'm not even American. But I know how to use Google and the US provides a handy website where you can go and find out what all the current tariffs are for various products you can import into the US:
By your own admission, you looked into one aspect of the complexity of the tariff situation. That's like trying to explain why groceries are expensive by only checking the wholesale price of apples, while ignoring fuel, labor, shipping, packaging, rent, etc. You're not necessarily wrong about apples, but you're missing additional systems that directly affect the overall cost.

Edit: For the record, I do not think that the tariffs JUSTIFY the price increases. For the hardware I'm manufacturing for January 2026, just today we made the call not to raise our MSRP per unit compared to last year, and instead we're going to deal with thinner margins and try to make up the difference elsewhere. In no fucking universe do I think Nintendo or Sony have raised the prices on their aging hardware for consumers.
 
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While there are a lot of additional factors that are causing price increases (like the general inflation of the US dollar), tariffs are absolutely contributing greatly to these price increases.

I'm currently manufacturing gaming hardware right now for my job, and component prices are being drastically affected by the tariffs. I need to purchase and secure components before entering manufacturing, and that alone is affecting my per unit cost by over 20% compared to last year. Even when manufacturing is relocated to countries like Vietnam (in the case of the PS5), many suppliers have raised their prices to cover their tariff risk in the last few months, not to mention the additional logistics needed in some manufacturing now. The import tariff may not be on the final console, but there are a myriad of upstream costs that ripple into the final MSRP.

I'm happy to dive into more specifics, but this is an extremely surface-level take on a complex issue. And I'm not trying to be rude, OP, but you're just completely wrong about this. Tariffs are not the only reason for the price increases, but they are certainly a significant factor.
To the surprise of few:


Booking Melissa Mccarthy GIF by ADWEEK


Not put to bed.
 
The constant tariffs, tariff threats and tariff backtracking amongst other things are creating chaos in markets across the globe regardless of what is included and what is excluded in any actual tariffs so nothing is safe. In the first half of the year the US dollar against other currencies lost more value than it has in over 50 years and the likes of Morgan Stanley think it could still lose another 10% in value by the end of next year. So when stuff like that is happening you will get price increases to counter the lost value as well as the fact that market instability can impact spending habits. That means that even stuff 100% manufactured and distributed in the US that wouldn't have any direct link to tariffs are just as much at risk of price increases just because of the general market instability. Yes with stuff like this there will always come an element of greed where companies will just look to take advantage of the situation so one can always argue if they actual needed to but the situation for them to take advantage of still has to exist to take advantage of it. And that situation isn't going to stabilize any time soon.
 
edit: also as usual if you don't prompt AI enough it gives shit results, but it got there in the end with a source that is comprehensive.
Or as i've found out you prompt it or argue enough and it starts agreeing with you even though your wrong 🤯
 
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Directly or indirectly tariffs will affect a lot of stuff.

I was expecting both Nintendo and Sony to increase the price of the Switch 2 and PS5 in the US until early next year.

For Nintendo it's now only a matter of when and not if. I reckon at the beginning of next year since they have a $500 Pokemon bundle for the holidays.
 
While there are a lot of additional factors that are causing price increases (like the general inflation of the US dollar), tariffs are absolutely contributing greatly to these price increases.

I'm currently manufacturing gaming hardware right now for my job, and component prices are being drastically affected by the tariffs. I need to purchase and secure components before entering manufacturing, and that alone is affecting my per unit cost by over 20% compared to last year. Even when manufacturing is relocated to countries like Vietnam (in the case of the PS5), many suppliers have raised their prices to cover their tariff risk in the last few months, not to mention the additional logistics needed in some manufacturing now. The import tariff may not be on the final console, but there are a myriad of upstream costs that ripple into the final MSRP.

I'm happy to dive into more specifics, but this is an extremely surface-level take on a complex issue. And I'm not trying to be rude, OP, but you're just completely wrong about this. Tariffs are not the only reason for the price increases, but they are certainly a significant factor.
I get what the suppliers are doing, but it is essentially making the rest of the world (in this case indirectly the U.S. too) for their profit margins shrinking when they sell to U.S. customers.

If product A is made and assembled in country X from company Y of country Z using components manufactured in country W and that company Y then ships the product to the U.S. without additional tariffs (game consoles not affected by the tariff increases directly)…

How are the tariffs causing the price of components to rise? I get why, manufacturers are trying to take advantage of any excuse to raise prices and they are trying to make other countries pay for them absorbing some of the costs of the tariffs they are affected by when they sell their components directly to the U.S. …
That or actually the tariffs still directly affect console sales and the OP is wrong… or a mix of the two…
 
The constant tariffs, tariff threats and tariff backtracking amongst other things are creating chaos in markets across the globe regardless of what is included and what is excluded in any actual tariffs so nothing is safe. In the first half of the year the US dollar against other currencies lost more value than it has in over 50 years and the likes of Morgan Stanley think it could still lose another 10% in value by the end of next year. So when stuff like that is happening you will get price increases to counter the lost value as well as the fact that market instability can impact spending habits. That means that even stuff 100% manufactured and distributed in the US that wouldn't have any direct link to tariffs are just as much at risk of price increases just because of the general market instability. Yes with stuff like this there will always come an element of greed where companies will just look to take advantage of the situation so one can always argue if they actual needed to but the situation for them to take advantage of still has to exist to take advantage of it. And that situation isn't going to stabilize any time soon.

Tariffs indeed hurt companies that manufacture in the US like Ford. The only one profiting from all these tariffs at the moment is the US government that's raking in money, everyone else loses.


Ford Motor paid out more than $800 million in tariffs last quarter, despite manufacturing most of its vehicles in the U.S.
The tariff bill came from parts imported from outside of the country as well as from fees on steel and aluminum. The hit helped wipe out the company's net profit, leading to its first quarterly loss since 2023.
Executives said they are pressing the Trump administration to lower levies on parts and materials. "They've made it clear that Ford as the most American automaker should not be disadvantaged," finance chief Sherry House said. "We are optimistic."
The company said tariff-related costs will cut about $2 billion from its annual earnings, more than the $1.5 billion it predicted three months ago.
 
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