Trump threatens to reinstate video game hardware tariffs as console prices already hit record highs

The Trump administration is weighing another round of semiconductor tariffs, and gaming hardware is squarely in the crosshairs. A Politico report from August 27, 2026 cites eight anonymous sources briefed on the discussions, all pointing to early-stage proposals that could hit finished electronics, including the Nintendo Switch 2, PlayStation 5, and Xbox Series X. Console prices have already climbed sharply without any new policy nudge. The PS5 now costs $150 more than it did at launch. The Xbox Series X is up $300. What the proposals actually say The proposals are still being negotiated internally. Sources indicate the administration is considering a staggered rollout, potentially paired with incentives designed to encourage semiconductor manufacturers to build or expand production inside the United States. Commerce Secretary Howard Lutnick has reportedly backed the idea of tying tariff relief to concrete commitments on domestic chip production. Companies that agree to manufacture semiconductors on American soil could face lower duties than those that don’t. This approach mirrors the broader trade strategy the administration has pursued since early 2026, when a 25% levy on AI chip...