Switch Saved! How Nintendo Outsmarted Trump's Tariffs

Nintendo Dodged Trump’s Tariffs and Saved the Switch 2 Release

Nintendo fans in the United States can finally breathe a sigh of relief as they unbox their brand-new Nintendo Switch 2 consoles. The on-again, off-again trade tariffs threatened by the Trump administration, which initially caused pre-order delays, made the highly anticipated **June 5th release date** feel uncertain. A potential price increase above the planned $450 loomed large, but thankfully, those fears did not materialize for initial buyers.

However, Nintendo's dance around these tariffs isn't over. The company strategically launched its device within a **90-day tariff pause** enacted by the former president. But if tariffs on countries like India and Japan revert to the levels proposed during Trump's "liberation day" speech in early April, experts predict Nintendo will have to prepare for yet another intricate trade policy maneuver.

The possibility remains that a Switch 2 purchased during the holiday season could cost more than it did at launch. Nintendo’s rivals in the gaming hardware space, and indeed, anyone shipping electronics to the U.S., have been watching the Switch 2 situation with keen interest.

"What saved Nintendo in this case was that Trump chickened out," according to Notre Dame professor and international economist Robert Johnson.

Vietnam Tariffs Forced Nintendo to Scramble

Since its debut in March 2017, the Switch has become a monumental success, selling over **150 million units worldwide**. Nintendo teased its successor in January and provided a comprehensive reveal during an April 2nd live stream, announcing the June 5th release with a **$450 price tag** in the US (or $500 with the Mario Kart World bundle). But just hours later, Trump announced new tariffs on imports from countries with a trade deficit with the US.

These included a **24% tariff on Japan**, where Nintendo is headquartered, and a staggering **46% tariff on Vietnam**, where most of its Switch manufacturing takes place. Stock markets reacted, and Nintendo fans worried about potential price hikes.

U.S. pre-orders for the Switch 2, initially slated to begin on April 9th, were delayed by Nintendo to "assess the potential impact of tariffs and evolving market conditions." The June 5th release date remained, the company stated. Gamers took to social media to express their frustration, largely directed at the Trump administration. Pre-orders eventually resumed on April 24th and quickly sold out.

Nintendo did not immediately respond to requests for comment.

Prepared for the Wrong Tariffs, Saved by ‘taco’

Johnson points out that Nintendo, like many other consumer electronics companies, has been grappling with production location decisions for years.
In 2019, during the previous Trump administration, Nintendo began shifting Switch production from China to Vietnam to avoid U.S. tariffs on Chinese imports. While some Switch products are still manufactured in China, these are typically shipped to markets outside the U.S. Other major tech companies, like Apple, have similarly moved manufacturing operations from China to countries such as India to minimize the impact of tariffs.

However, the current administration's announcement of a **46% tariff on imports from Vietnam** caught many off guard. These looming tariffs, and the uncertainty surrounding them, could affect the pricing of virtually any consumer tech product entering the U.S.

Sony and Microsoft, both expected to release new consoles in 2027, will likely face similar challenges to Nintendo.

"It takes a long time and significant capital outlays to bring new production facilities online. Producers really like to operate in a stable environment," Johnson said. "The current trade environment is the exact opposite of that."

The "liberation day" tariffs could easily have led to a higher Switch 2 price or a delayed release. But Nintendo managed to avoid that fate thanks to backpedaling by the Trump administration, a behavior described by the Financial Times using the acronym "**taco**" – short for "Trump always chickens out". Trump's call for a **90-day pause** on tariffs to allow negotiations meant the Switch 2 could be released during a window in which import taxes wouldn’t apply.

Even if negotiations with Vietnam fail, reports estimate that Nintendo has already shipped around **746,000 Switch 2 units** to the U.S., which would not be subject to the higher tariffs.

Pricier Add-ons

Nintendo consumers won't entirely escape the effects of tariffs. The company has stated that accessories for the device, a key aspect of the Switch's dual form factor, will "experience price adjustments." So far, docks used to play the Switch on a full-size screen will cost **$10 more**, while straps for the two controllers will see a **$1 increase**, according to CNBC. Johnson also suggests Nintendo might consider raising the console's price around the holiday season, especially if Trump implements the 46% tariff on Vietnam.

"I find it difficult to imagine that the Trump administration will want thousands of stories written during the holiday season about how Trump ruined Christmas," Johnson said. "So I expect they'll find a way to climb down, but – like everyone else – I'm not sure about that."

However, there's another reason why Nintendo might keep console prices stable: the majority of its revenue comes from software and online subscriptions, which are not subject to tariffs.

"In the end, Nintendo wants to sell consoles to get people to buy games and accessories," Johnson said. "As a result, it may be willing to hold down the price of consoles."

Nintendo's clever navigation of complex trade policies highlights the challenges and strategies businesses employ in a volatile global market. While the immediate threat to the Switch 2's price has been averted, the situation remains dynamic, reminding us that even the world of video games is intricately connected to international economics and politics. The future remains uncertain, but for now, gamers can enjoy their new consoles, and Nintendo can continue to innovate in the gaming space, hopefully free from the burden of excessive tariffs.

Tags: Nintendo Switch 2, US tariffs, Trump tariffs, Nintendo, Video game console, Release date, Price hike, Trade policy, India, Japan

Source: https://www.theguardian.com/games/2025/jun/05/nintendo-trump-tariffs-switch-2