Trump's Tariffs and the Amusement Industry: A Case for Global Diversification
20 April 2025 · Uncategorized ·
Source: · https://finance.technews.tw/2025/04/06/amusement-industry/
Adjustments to import tariffs by the US targeting specific countries are expected to affect globally export-dependent enterprises. V-Tech (智崴), a leading manufacturer of motion simulator equipment, has stated that its diversified global market presence and high-margin product offerings have mitigated risks associated with policy changes in any single country.
V-Tech’s products are currently sold across more than 20 countries including Canada, Japan, Germany, Mexico, and Saudi Arabia. This diversification reduces dependence on the US and other markets, minimizing risk from individual national policies. According to V-Tech's statistics for 2023, the American market accounted for only 4% of total revenue; this figure is expected to decrease further to just 1% in 2024. With current trends indicating increased opportunities outside America—particularly in Middle Eastern and Asian markets—the overall impact from Trump’s tariff policy on V-Tech will be minimal.
While global tariffs may affect the amusement industry by increasing consumer costs worldwide and potentially accelerating a trend toward reduced spending, customers are expected to shift their focus towards cost-effective products. In response, V-Tech is expanding its product range, including economic flight theaters (o-Ride) sold in Brazil, Japan, and Canada; new 4D motion cinemas have been installed in South Korea, with plans for a high-capacity, value-for-money flight theater series launching this July.
Furthermore, V-Tech offers comprehensive solutions encompassing film production, animation creation, digital content licensing, and theme design services. These diversified offerings drive growth in both equipment sales and licensed content markets while enhancing individual transaction values through tailored venue designs.
Leveraging its strong market advantage of high gross margins—compared to competitors primarily focused on the US market—V-Tech is well positioned against tariff impacts due to core competencies in research & development (R&D) and system integration. Critical patented hardware components are manufactured domestically, with other parts sourced locally based on export destinations; this approach has improved cost efficiency and provides competitive pricing advantages.
Will leisure amusement industries experience a major downturn as a result of high tariffs? Historical trends suggest that—aside from the 2020 pandemic which restricted activities globally—negative impacts during past financial crises have not exceeded 10%. Currently, international theme parks are expanding rapidly with strong demand for new facilities; Disney plans to invest $60 billion over ten years in its amusement park and cruise projects. Shanghai Disneyland announced expansion last August while the Middle East is actively investing under Vision 2030.
V-Tech emphasizes that despite high tariffs, it will maintain steady growth.
V-Tech’s products are currently sold across more than 20 countries including Canada, Japan, Germany, Mexico, and Saudi Arabia. This diversification reduces dependence on the US and other markets, minimizing risk from individual national policies. According to V-Tech's statistics for 2023, the American market accounted for only 4% of total revenue; this figure is expected to decrease further to just 1% in 2024. With current trends indicating increased opportunities outside America—particularly in Middle Eastern and Asian markets—the overall impact from Trump’s tariff policy on V-Tech will be minimal.
While global tariffs may affect the amusement industry by increasing consumer costs worldwide and potentially accelerating a trend toward reduced spending, customers are expected to shift their focus towards cost-effective products. In response, V-Tech is expanding its product range, including economic flight theaters (o-Ride) sold in Brazil, Japan, and Canada; new 4D motion cinemas have been installed in South Korea, with plans for a high-capacity, value-for-money flight theater series launching this July.
Furthermore, V-Tech offers comprehensive solutions encompassing film production, animation creation, digital content licensing, and theme design services. These diversified offerings drive growth in both equipment sales and licensed content markets while enhancing individual transaction values through tailored venue designs.
Leveraging its strong market advantage of high gross margins—compared to competitors primarily focused on the US market—V-Tech is well positioned against tariff impacts due to core competencies in research & development (R&D) and system integration. Critical patented hardware components are manufactured domestically, with other parts sourced locally based on export destinations; this approach has improved cost efficiency and provides competitive pricing advantages.
Will leisure amusement industries experience a major downturn as a result of high tariffs? Historical trends suggest that—aside from the 2020 pandemic which restricted activities globally—negative impacts during past financial crises have not exceeded 10%. Currently, international theme parks are expanding rapidly with strong demand for new facilities; Disney plans to invest $60 billion over ten years in its amusement park and cruise projects. Shanghai Disneyland announced expansion last August while the Middle East is actively investing under Vision 2030.
V-Tech emphasizes that despite high tariffs, it will maintain steady growth.