https://wccftech.com/console-world-heaves-a-sigh-of-relief-as-the-threat-of-tariffs-eliminated-for-now/

The console gaming industry can heave a collective sigh of relief as the searing hot tension between the U.S. and China eased in January, bringing with it an end to the threat of punitive tariffs that had threatened the financial viability of the entire industry.

Since May 2019, the Trump administration had been contemplating the imposition of a 25 percent tariff on the import of gaming consoles from China. The proposal sent alarm bells ringing throughout the gaming console industry due to its sweeping ramifications. As an illustration, over 96 percent of the consoles imported in the U.S. in 2018 came from China. Moreover, given the thin margins associated with the consoles in general, the action would have severely hampered the $43 billion U.S. gaming industry and led to significant job losses among the industry’s workforce of about 220,000, according to a joint letter from Nintendo, Microsoft, and Sony. The letter, penned in June 2019, went on to note that: