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On Wednesday, Sony announced a $50 price increase for PlayStation 5 consoles in the United States, citing a "challenging economic environment." Isabelle Tomatis, vice president of global marketing at Sony Interactive Entertainment, stated in a post, "Like many global companies, we are navigating a difficult economic landscape." The revised prices for the PS5 will be $550, while the "Digital Edition" will cost $500, and the Pro version will be priced at $750, as noted by Tomatis.
Tariffs imposed by President Donald Trump hike the cost of goods brought into the US, leaving companies like Japan's Sony to decide whether to pass that on to consumers.
After initially being threatened with a 25 percent hike, Japan negotiated a 15 percent tariff with the Trump administration. "As a result, we've made the difficult decision to increase the recommended retail price for PlayStation 5 consoles in the US." In May, Sony warned it was considering tweaking prices in the US, estimating that tariffs could wind up costing the company about $680 million in the fiscal year. American companies are feeling the crunch, too.
New York-based cosmetics giant Estee Lauder recently estimated the impact of the new tariffs at around $100 million for the 2026 financial year and plans to adjust its prices to offset the additional cost. US snack giant PepsiCo could increase prices of its soft drinks about 10 percent to mitigate effects of US tariffs, particularly those on imported aluminum used to make soda cans, according to trade magazine Beverage Digest. Meanwhile, California-based energy drink maker Monster Beverages is considering raising prices due to a "complex and dynamic customs landscape," according to chief executive Hilton Schlosberg.
The Commerce Department this week said the US broadened its steel and aluminum tariffs, impacting hundreds more products that contain both metals such as child seats, tableware and heavy equipment.
Since returning to the presidency, Trump has imposed tariffs on almost all US trading partners. Though the impact of Trump's tariffs on consumer prices has been limited so far, economists warn that their full effects are yet to be seen.
Some businesses have coped by bringing forward purchases of products they expected will encounter tariffs. Others have passed on additional costs to their consumers, or absorbed a part of the fresh tariff burden.
