Rising PlayStation prices due to impact of U.S. tariffs
In a series of economic moves that have been affecting various industries, President Donald Trump's tariffs continue to make waves. One of the latest announcements comes from Sony Interactive Entertainment, who have decided to increase the recommended retail price for PlayStation 5 consoles in the US.
Sony Interactive Entertainment's decision follows the official announcement of a price increase for PlayStation 5 consoles due to tariffs introduced by President Trump on April 14, 2025. The tariffs have been impacting a wide range of industries, including consumer electronics, and are now affecting products such as child seats, tableware, and heavy equipment.
The new price for the standard PS5 will be $550, with a "Digital Edition" priced at $500 and a Pro version for $750. Sony warned in May that tariffs could cost the company about $680 million in the fiscal year.
Estee Lauder, a leading name in the beauty industry, is also feeling the crunch of the tariffs. The company expects to incur an additional cost of around $100 million due to the tariffs, with Estee Lauder estimating the impact of the new tariffs at around $100 million for the 2026 financial year.
PepsiCo, another American giant, could increase the price of its soft drinks by about 10% to mitigate the effects of US tariffs, specifically those on imported aluminum used for soda cans. Monster Beverages is also considering raising prices due to a "complex and dynamic customs landscape."
Businesses have been coping with tariffs in various ways. Some have passed on additional costs to consumers, while others have absorbed a part of the fresh tariff burden. Some businesses have coped by bringing forward purchases of products they expected would be affected.
After initially being threatened with a 25 percent hike, Japan negotiated a 15 percent tariff with the Trump administration. However, the full effects of Trump's tariffs on consumer prices have yet to be seen, according to economists. They warn that as the full effects of the tariffs are realized, the impact on consumer prices may change.
In the beverage industry, the tariffs have had an impact on companies such as PepsiCo and Monster Beverages. The Commerce Department has broadened US steel and aluminum tariffs, impacting hundreds more products containing both metals.
The situation remains fluid, with businesses and consumers alike adapting to the changing economic landscape. As the tariffs continue to be implemented, it will be interesting to see how other industries are affected and how businesses choose to respond.
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