New Trump Tariffs Could Have a Devastating Effect on Gaming Hardware

Published Aug 27, 2026, 11:30 AM EDT

That could lead to even pricier versions of the Nintendo Switch 2, PlayStation 5, Steam Deck, and Xbox Series X.

The Trump administration’s goal is to encourage domestic chip manufacturing, and one potential tariff would tie tariff relief to investment in U.S. semiconductor factories. Politico’s insiders stressed that the specifics are still up in the air, and that this framework could change drastically in the coming weeks or months.

The U.S. tech industry has generally opposed Trump’s tariffs on semiconductors, arguing that it is already dealing with a shortage of chips needed to build AI data centers. Because the factories capable of creating these semiconductors will take years, if not decades, to build in the United States, the tech industry argues that it’s impractical to implement such sweeping tariffs on foreign-made chips so quickly.

What do these potential tariffs have to do with video game consoles?

The Trump administration’s new tariffs would impose duties on video game consoles, meaning game companies would essentially be taxed when importing consoles to the United States. This cost would almost certainly be passed on to consumers via console price hikes. If this situation sounds like déjà vu, that’s because it is.

Shortly after the Trump administration revealed a sweeping set of tariffs on April 2, 2025, Nintendo announced price increases for the original Nintendo Switch. While the company didn't cite the tariffs as the reason for this price increase, it was easy to read between the lines.

Image: Nintendo

However, after the Supreme Court ruled this batch of tariffs unconstitutional, the Trump administration was forced to refund corporations; Nintendo boasted that the payout helped push the company to a massive quarterly profit. While the manufacturer behind the Playdate directly refunded customers for the tariff-induced price increases, Nintendo and others didn't.

Beyond these potential tariffs, the tech industry's rush to build AI data centers has created a RAM shortage that has driven up console prices. The PS5 currently costs $150 more than it did at launch, and the Xbox Series X is $300 more than at release. The Nintendo Switch 2 is getting a $50 increase in September.