If you're a gamer, brace yourself for some bad news about your wallet. California Governor Gavin Newsom is sounding the alarm that President Donald Trump's trade policies could hit gamers right where it hurts—their bank accounts and their hobby.
Gaming Gets Pricier as California Governor Blasts Trump Over Chip Tariffs
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The Gaming President Strikes Out
Newsom's press office didn't hold back on Wednesday, taking to X to slam the administration's approach to semiconductor tariffs. The governor's office quoted a YouTuber reporting that Sony Group Corp. (SONY) might delay the PlayStation 6 launch because of rising chip costs, according to Insider Gaming.
"The Trump Admin is making gaming worse and more expensive," the post declared.
But that wasn't all. In a separate jab, Newsom's office pointed to reports that Nvidia Corp (NVDA) and Advanced Micro Devices Inc. (AMD) are considering raising GPU prices. "The 'Gaming' President strikes again!" the post quipped.
What's Actually Happening With Chip Tariffs
Here's the backdrop: The Trump administration has semiconductor tariffs on Chinese imports in limbo. While they've been delayed until June 23, 2027, with the actual rate to be announced at least 30 days beforehand, the uncertainty alone is already rippling through the industry.
Chinese officials aren't happy about it. Beyond protesting the tariffs, Beijing is reportedly reviewing potential shipments of one of Nvidia's most powerful AI chips to China—a move that's caught the attention of U.S. policymakers worried about military applications.
The Supply Crunch Nobody Saw Coming
Meanwhile, Nvidia is dealing with what you might call a good problem that's still a problem. The chipmaker is drowning in Chinese demand for its H200 AI chips but can't keep up with orders.
The numbers are wild: Nvidia has reportedly received orders for over 2 million H200 chips for 2026, but only has about 700,000 units available. That's not even close. To bridge the gap, the company is pushing its supplier, Taiwan Semiconductor Manufacturing Co. (TSM), to ramp up production.
And the demand keeps growing. ByteDance, the company behind TikTok, is going all-in on artificial intelligence spending. The tech giant is reportedly planning to drop over 100 billion yuan—that's roughly $14 billion—on Nvidia chips next year alone.
So gamers might want to start saving now. Between tariff uncertainty, supply constraints, and AI companies buying chips by the millions, your next gaming upgrade could cost significantly more than you planned.
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