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Gaming Giants Speak Out Against China Tariffs, Warns They Will Make Consoles Too Expensive for Many Households

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Microsoft, Sony and Nintendo have  published a joint response to the Office of the United States Trade Representative stating that the new tariffs on China will result in “enormous impact and undue economic harm” that impacts the “entire video game ecosystem.”

The letter says that these tariffs will “injure consumers, video game developers, retailers and console manufacturers,” “put thousands of high-value, rewarding U.S. jobs at risk,” and “stifle innovation in our industry and beyond.”

“While we appreciate the Administration’s efforts to protect U.S. intellectual property and preserve U.S. high-tech leadership, the disproportionate harm caused by these tariffs to U.S. consumers and businesses will undermine—not advance—these goals. Accordingly, we respectfully request that the Administration remove HTSUS subheading 9504.50.00, covering video game consoles, from the final list of tariffs, and thus refrain from applying tariffs on these products,” the letter, addressed to General Counsel Joseph Barloon states.

Last month, the White House increased duties on $200 billion worth of Chinese imports, and threatened to hit the remaining $300 billion with tariffs of up to 25%. During an interview with Fox Business Network’s Maria Bartiromo on Wednesday, President Donald Trump again threatened the additional tariffs if there is no progress towards a trade deal during his meeting with Chinese President Xi Jinping at the G-20 Summit in Japan.

The letter from the three gaming companies points out that between them, in 2018 alone, they collectively sold more than 15 million video game consoles in the US. They also noted that together they employ nearly 8,000 people across the United States — including high-value, high-tech research and development roles and creative design and coding jobs in game development studios.

However, they explained that building the consoles themselves in the United States is no simple task.

“In 2018, over 96% of video game consoles imported into the United States were made in China,” the letter explains. “The video game console supply chain has developed in China over many years of investment by our companies and our partners.”

The letter goes on to say that it “would cause significant supply chain disruption to shift sourcing entirely to the United States or a third country, and it would increase costs—even beyond the cost of the proposed tariffs—on products that are already manufactured under tight margin conditions. Each video game console comprises dozens of complex components sourced from multiple countries. A change in even a single supplier must be vetted carefully to mitigate risks of product quality, unreliability and consumer safety issues. Tariffs would significantly disrupt our companies’ businesses and add significant costs that would depress sales of video game consoles and the games and services that drive the profitability of this market segment.”

The industry leaders explained that a 25% price increase would likely put new video game consoles out of reach for many American families who would generally be in the market for a new console over the upcoming holiday season. They noted that two out of three US households have at least one gamer and the threatened tariffs would cost those consumers $840 million more than they otherwise would have, according to a recent study prepared for the Consumer Technology Association by the independent economic group, Trade Partnership.

Despite the potential disruption, there have already been rumbles of Nintendo moving out of China to avoid the tariffs, Comicbook.com reports.

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WATCH: Los Angeles Democrat Mayor Eric Garcetti Booed HARD At Dodgers Opener

Los Angeles Democrat Mayor Eric Garcetti was massively booed at the Dodgers home opener on Friday afternoon.

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Los Angeles Democrat Mayor Eric Garcetti was massively booed at the Dodgers home opener on Friday afternoon.

It was the first game at the stadium in over 18 months.

“For more than a year, we’ve been warned that singing, chanting and yelling is best avoided, for fear of exhaling virus-carrying droplets. On Friday, thousands of fans at Dodger Stadium exhaled loudly, booing Garcetti as if he were Chase Utley in New York,” the Los Angeles Times reported.

Garcetti was at the event to commemorate the Dodgers’ victory in the World Series last fall.

When he was introduced as the team geared up to hoist their championship banner, the crowd did not hold back their massive displeasure with the liberal mayor.

The mayor continued to wave and act normal during the prolonged booing, though his mask made it hard to fully make out his reaction.

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Black Lives Matter Co-Founder Buys $1.4 Million Compound in Extremely White California Neighborhood

Black Lives may matter to her, but she apparently does not want to live near them.

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Black Lives Matter co-founder Patrisse Khan-Cullors has purchased a $1.4 million compound in Topanga Canyon — an area with barely any black people.

The 37-year-old social justice warrior will definitely not have to worry about any of the riots she helps to stoke while tucked away in the ritzy upscale neighborhood.

The racial makeup of Topanga is 7,313 (88.2%) White (84.5% Non-Hispanic White), 117 (1.4%) African American, 35 (0.4%) Native American, 353 (4.3%) Asian, 3 (0.0%) Pacific Islander, 125 (1.5%) from other races, and 343 (4.1%) from two or more races. Hispanic or Latino of any race were 534 persons (6.4%).

“Kahn-Cullors, a UCLA and USC graduate married about five years ago to social activist (and amateur boxer) Janaya Khan, co-founder of Black Lives Matter Toronto, created the #BlackLivesMatter hashtag in 2013 in response to George Zimmerman’s acquittal in the 2012 shooting of Trayvon Martin,” the Dirt reports. “Since then, the largely decentralized movement has been at the influential forefront on issues of police brutality and racially motivated violence against Black people, particularly in the wake of George Floyd’s killing last summer that sparked massive protests across the United States and around the globe. Kahn-Cullors’ published ‘When They Call You a Terrorist: A Black Lives Matter Memoir’ in 2018.”

According to the real estate website The Dirt, the home is a “winding 15 minute drive from The Commons at Calabasas and a slightly longer and somewat less serpentine drive from Malibu’s Getty Villa, the pint-sized compound spans about one-quarter of an acre. The property’s not-quite 2,400 square feet is divided between the a three-bedroom and two-bath main house and a separate one-bed/one-bath apartment capable of hosting guests long term with a private entry and a living room with kitchenette.”

“Interior spaces feature bamboo floors and, in the spacious open-plan living room, dining area and kitchen, vaulted ceilings clad in knotty pine. A whitewashed raised hearth brick fireplace anchors the living room and numerous skylights baths the cavernous space with natural light.”

Black Lives may matter to her, but she apparently does not want to live near them.

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MUST WATCH: California Restaurant Owner Blocks Health Inspector’s Car, ‘If We Can’t Work, You Can’t Work’

A GoFundMe campaign to support the restaurant has raised over $20,000.

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A heroic California restaurant owner blocked in a Los Angeles County health inspector’s car after he attempted to shut his business down for allowing outdoor dining, asserting that “if we can’t work, you can’t work.”

Carlos Roman, the owner of Bread & Barley in Covina, did not back down even after police arrived.

“He wants to come in here and say that no one can work, so he can’t work either,” Roman told the officer. “He decided to come today and take photos of the people outside and say that he was going to fine us,” he explained.

https://twitter.com/hollandcourtney/status/1343623418910973953

Roman refused to move his truck, telling the officer to go ahead and get her supervisor.

“This is what happens when people get desperate. I’m desperate. Who is going to pay her car payment? Who is going to pay my cook’s rent?” Roman asked the officer. “I want it to be hard on everyone. I want everyone to see how hard this sh-t is.”

The outraged owner demanded to know if the inspector and the officer got paychecks last week, asserting that his employees haven’t.

“You’re just doing your job right, we’re all in this together?” Roman asked the inspector. “When I go to the bank, can I tell the bank the health department said it’s ok and that I don’t have to pay you?”

“What do I tell my employees?” Roman shouted.

Roman is now facing two $500 fines for failure to comply and interfering with the health officer.

A GoFundMe campaign to support the restaurant has raised over $20,000.

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