wraggster
January 27th, 2020, 20:29
Console manufactures can breathe easy after tension between China and the US cooled earlier this month.
Following a recent agreement between US president Donald Trump and Chinese vice premier Liu He (https://www.bbc.co.uk/news/business-51114425), a number of trade tariffs have been taken off the table indefinitely.
Among them was the proposed 25% import tax on consoles, the overwhelming majority of which are produced in China. According to figures from Sony, Microsoft, and Nintendo, over 96% of consoles imported into the US in 2018 came from China.
In response to the threat, Microsoft, Sony (https://www.gamesindustry.biz/articles/2019-07-05-microsoft-and-sony-reportedly-scaling-back-console-production-in-china), and Nintendo (https://www.gamesindustry.biz/articles/2019-06-12-nintendo-partially-pulls-switch-production-out-of-china-to-limit-damage-by-us-tariffs) all reportedly scaled back console production in China.
With the the PlayStation 5 and Xbox Series X launch scheduled to launch later this year -- along with rumours of a Nintendo Pro -- the news is well-timed for manufacturers and consumers alike.
https://www.gamesindustry.biz/articles/2020-01-27-console-tariff-off-the-table-as-tensions-ease-between-us-and-china
Following a recent agreement between US president Donald Trump and Chinese vice premier Liu He (https://www.bbc.co.uk/news/business-51114425), a number of trade tariffs have been taken off the table indefinitely.
Among them was the proposed 25% import tax on consoles, the overwhelming majority of which are produced in China. According to figures from Sony, Microsoft, and Nintendo, over 96% of consoles imported into the US in 2018 came from China.
In response to the threat, Microsoft, Sony (https://www.gamesindustry.biz/articles/2019-07-05-microsoft-and-sony-reportedly-scaling-back-console-production-in-china), and Nintendo (https://www.gamesindustry.biz/articles/2019-06-12-nintendo-partially-pulls-switch-production-out-of-china-to-limit-damage-by-us-tariffs) all reportedly scaled back console production in China.
With the the PlayStation 5 and Xbox Series X launch scheduled to launch later this year -- along with rumours of a Nintendo Pro -- the news is well-timed for manufacturers and consumers alike.
https://www.gamesindustry.biz/articles/2020-01-27-console-tariff-off-the-table-as-tensions-ease-between-us-and-china