The global gambling sector is preparing for potential disruptions following U.S. President Donald Trump’s latest tariff announcements. Images of Trump unveiling a board of new trade duties at the White House have made headlines worldwide, and while many industries are scrambling to assess the fallout, the gambling industry is no exception.

Gaming stocks have already taken a hit in response to the tariff news, though the full implications for global markets and trade are still unfolding. Phil Bernard, vice president at Eilers & Krejcik Gaming, told iGaming Expert that quantifying the specific financial toll on the gaming industry remains difficult due to the recency of the measures. Still, he anticipates a noticeable rise in cabinet costs, given the global nature of supply chains, although the actual increase may not fully match the listed tariff rates.

“The extent of reliance on international manufacturing differs across suppliers,” Bernard noted, pointing to the diversity in sourcing and production strategies within the gaming hardware sector.

While Canada has not been directly affected by new U.S. tariffs, the Alberta Gaming and Liquor Commission (AGLC) took a firm stance, halting procurement of U.S.-made gaming terminals. As of March 6, the AGLC announced it would only purchase equipment from companies offering support services in Alberta or based in countries that maintain a free trade agreement with Canada.

In retaliation to earlier U.S. trade penalties, Canada had previously imposed a 25% import duty on over 1,200 products—two of which relate to gambling.

Tensions have also intensified between Washington and Macau. Trump's "America First Investment Policy" has named the Chinese territory—a global gambling hub—as a “foreign adversary,” raising the prospect of investment restrictions over national security and technology concerns.

Despite growing unease, Bernard suggests the impact on final gaming products may be limited. “Most major vendors conduct assembly in key markets, which buffers the effect of tariffs on end products,” he explained. “However, certain components, especially electronics such as chips and displays, are likely to become more expensive. These items account for only a portion of the product’s overall cost, and we expect cost burdens will be shared across the supply chain, slightly compressing margins.”

Eilers & Krejcik revised its projections for U.S.-Canada gaming sales, reducing estimates from 2% growth to a 13% decline, citing potential retaliation from Canadian regulators and reduced procurement activity following U.S. tariffs.

Bernard emphasized the broader concern lies in reduced consumer spending. “Gaming is discretionary. If inflation rises and growth slows, people will cut back,” he warned. “Though the market is stable for now, the threat of recession has increased.”

Nevertheless, he remains cautiously optimistic. “This situation is highly fluid. We anticipate that Canada and the U.S. could reach a trade resolution later this year, shifting demand rather than erasing it entirely. If an agreement is struck in the next quarter, we may see recovery in the second half of the year.”

Following Trump’s April 9 decision to delay the bulk of tariffs targeting U.S. trading partners, stock markets rebounded, with shares of both American and Asian firms surging. However, tariffs on Chinese imports rose steeply, reaching 125%.