20th of February Supreme Court of the United States (SCOTUS) ruled by a 6-3 vote that most of the tariffs imposed by US President Donald Trump, which 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 impose tariffs on countries such as China, which adversely affected the gaming industry.
In early 2025, at the start of his second term, Trump began implementing reciprocal tariffs through the IEEPA. The tariffs affected the prices of various goods from nations such as China, Canada, and Mexico, and the costs were passed on to consumers. The administration, citing the IEEPA, cited immigration and drug trafficking as the main reasons. Although the IEEPA allows the administration to freeze certain transactions during national emergencies, the law makes no mention of fees. Once implemented, the tariffs had a massive impact 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.
The Xbox ROG Ally X Handheld is getting more expensive in at least 1 area
Reports indicate that the Asus ROG Xbox Ally X handheld gaming system is suddenly now more expensive to buy in at least one region of the world.
Supreme Court Rules Against Trump's Tariffs
Despite the Trump administration's efforts, the Supreme Court disagreed with the notion that most tariffs imposed under the IEEPA could be imposed by the president. The Supreme Court ruled 6-3 against Trump and said the IEEPA does not authorize the president to impose tariffs, citing a lack of jurisdiction. A court order was part of the case Learning Resources, Inc. vs. TrumpSCOTUS hearing oral arguments in November 2025. Chief Justice John Roberts wrote the majority opinion, joined by Justices Kagan, Sotomayor, Jackson, Gorsuch and Barrett. The majority vote states that the US Constitution vests the power to impose taxes and duties in Congress, not the President.
The dissenting opinion was delivered by Justice Brett Cavanaugh, joined by Justices Thomas and Alito. In his dissent, Justice Cavanaugh said, “The fees at issue here may or may not be wise policy. But by text, history and precedent, they are clearly legitimate.” However, the Trump administration's tariffs have been blamed for the games Resident Evil requests Abandoning the physical collector's edition, the court's decision still leaves some distinct tariffs on goods such as steel. 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 global 10% tariff as one of those options, although these tariffs are limited to 150 days.
Don't expect prices to come down anytime soon
Although the Trump administration's economic plans have suffered a major setback, the Supreme Court's ruling is unlikely to have an immediate impact on the prices of video game consoles and PC components. The ongoing RAM shortage crisis, brought on by high demand for components required by AI-based data centers, has led to sharp price increases in RAM and solid-state drives (SSD). The ongoing shortage has even led stores like Costco to remove RAM sticks from its display PCs in response to theft. Although consumers can still purchase RAM at various retailers, the higher price points have made new PC builds more prohibitive.
The crisis has caused Valve to delay the launch of the Steam Machine until the first half of 2026. Additionally, Steam Deck is completely sold out in the US, and Valve expects to have a Steam Deck shortage for the foreseeable future. With the Steam Machine facing an uncertain future, it remains to be seen when consumers can expect any financial relief.
Source: Kotaku, AP
