Entertainment Software Association Prepping for Possible Tariff on Games

The Entertainment Software Association is in the process of formulating a plan to deal with the possibility of U.S. President Donald Trump rolling out trade tariffs, a source tells Polygon.

A tariff is essentially a form of tax that is used to make goods and services that are imported in the country more expensive to consumers than the same items made domestically.

Those possible tariffs could have an impact on the cost of game consoles and other hardware, much of which is manufactured overseas.

There were rumblings in the lead up to Trump's election that his team was floating the idea first of a five percent trade tariff, and then a possible 10 percent tariff. On Monday, Trump signed an executive order to withdraw from the Trans-Pacific Partnership. He also met with business and union leaders.

If an across-the-board trade tariff were imposed it would likely impact games and gaming consoles that are imported into the United States, like Nintendo's upcoming Switch console.