Sony warns everyone for Playstaion 5 price hike because of Trump's huge tariffs for Chinese goods

  • Sony’s upcoming PlayStation 5 console may be far from a launch, but it could be the most impressive and possibly the most expensive yet. The Wall Street Journal reported; Sony has warned that the price of the upcoming console could go up if President Trump’s administration goes ahead with higher tariffs on more Chinese exports.

    The Trump administration has already raised taxes from 10 to 25 percent on $200 billion worth of Chinese exports, an increase of 15 percent. The decision to expand tariffs to an additional $300 billion of Chinese goods would include Chinese-made video game devices. Considering contract manufacturers in China account for most of the PlayStations production, Sony will have no choice but to increase the price of the PS5.

    Last month, the three biggest players Microsoft, Sony and Nintendo teamed up to issue a statement against the proposed tariffs. In the letter to the U.S. Trade Representative’s Office, the console makers claim that the tariffs proposed would significantly disrupt business, but American consumers and small business – primarily video game developers – would take the biggest hit. The letter also details that the expansion of tariffs on Chinese goods would directly impact American consumers, shifting approximately $840 million in cost on to the consumer and could put about 200,000 American jobs at risk.

    According to the Wall Street Journal’s report, Sony is weighing up its options in preparation for the tariff expansions, including passing on some of the production cost to the customer. Sony’s financial chief Hiroki Totoki said, “We believe, and therefore have told the U.S. government, that higher tariffs would ultimately damage the U.S. economy.”