On February 20, the United States Supreme Court (SCOTUS) ruled by a vote of 6-3 that most of the tariffs imposed by US President Donald Trump, which have affected the prices of consoles such as the PlayStation 5 and Nintendo Switch, were unconstitutional. The Trump administration cited the 1977 International Emergency Economic Powers Act (IEEPA) as a way to enforce its tariffs on countries like China, which had a negative effect on the gaming industry.
In early 2025, at the start of his second term, Trump began imposing reciprocal tariffs through the IEEPA. The tariffs affected the prices of various goods from countries such as China, Canada and Mexico, and the costs were passed on to consumers. The administration cited immigration and drug trafficking as the main reasons for citing the IEEPA. Although the IEEPA allows the administration to block certain transactions during a national emergency, the law makes no mention of tariffs. Once enacted, the tariffs had a widespread effect on the global economy. The tariffs delayed Switch 2 pre-orders in the US by a few weeks but did not change the price or release date of Nintendo's latest console.
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Supreme Court rules against Trump's tariffs
Despite the Trump administration's efforts, the Supreme Court disagreed with the view that most of the tariffs imposed under the IEEPA could be enforced by the president. The Supreme Court ruled 6-3 against Trump, saying the IEEPA does not allow the president to impose tariffs, citing a lack of jurisdiction. The court's decision was part of the case Learning Resources, Inc. v. Trumpwhere SCOTUS heard oral arguments in November 2025. Chief Justice John Roberts wrote the majority opinion, with Justices Kagan, Sotomayor, Jackson, Gorsuch and Barrett concurring. The majority opinion said the U.S. Constitution says Congress, not the president, has the power to impose taxes and duties.
The dissenting opinion was delivered by Justice Brett Kavanaugh, who was joined by Justices Thomas and Alito. In his dissenting opinion, Judge Kavanaugh said: “The tariffs at issue here may or may not be sound policy. But as a matter of text, history and precedent, they are clearly legal.” Although the Trump administration's tariffs have been blamed for causing games like Resident Evil Requiem Forgoing a physical collector's edition, the court's ruling still leaves some distinct tariffs on goods like steel in place. In response to the court's decision, Trump said: “Their decision is wrong. But it doesn't matter, because we have very powerful alternatives.” Trump then announced a 10% global tariff as one of those options, though those tariffs are limited to 150 days.
Don't expect prices to drop anytime soon
Although the Trump administration's economic plan has been dealt a major blow, the Supreme Court ruling is unlikely to have any immediate effect on the prices of video game consoles and PC components. The ongoing RAM shortage crisis, which has been caused by high demand for essential components from AI-based data centers, has led to sharp price increases for RAM and solid-state drives (SSDs). The ongoing shortage has also prompted stores like Costco to remove RAM from their display computers in response to theft. Although consumers can still buy RAM from various retailers, the high price has made building a new PC more unaffordable.
The crisis has also caused Valve to delay the launch of the Steam Machine until the first half of 2026. In addition, the Steam Deck has completely sold out in the US, and Valve stated that they expect Steam Deck shortages to be intermittent for the foreseeable future. With the Steam Machine facing an uncertain future, it remains to be seen when consumers can expect any financial relief.
Sources: Kotaku, AP
