The ongoing global trade tensions have created uncertainty for tech companies and consumers alike, with Nintendo's highly anticipated Switch 2 console caught in the crossfire. After initially pausing US preorders due to tariff concerns, Nintendo may now have a pathway to maintain its planned pricing structure thanks to a recent policy shift.
Trump Administration Delays Reciprocal Tariffs Plan
In what could be described as a significant reprieve for the gaming industry, President Trump has temporarily delayed his reciprocal tariffs plan for 90 days. This decision provides breathing room for companies like Nintendo that were facing steep import duties on their products. The delay is particularly relevant for the Nintendo Switch 2, which had seen its US preorder launch halted due to tariff uncertainties.
Vietnam Manufacturing Benefits Nintendo
According to industry reports, approximately one-third of all Nintendo Switch 2 units are manufactured in Vietnam. This production strategy now appears fortuitous, as Vietnam would have faced a substantial 46% tariff under the originally planned policy implementation. Instead, with the delay in place, Vietnamese imports will continue to be subject only to the existing 10% US import tariff, significantly reducing Nintendo's potential cost burden.
Pricing Implications for Consumers
The tariff delay could have direct benefits for American consumers eagerly awaiting the Switch 2. Industry analyst Robin Zhu from Bernstein suggested to Bloomberg that If the tariffs stay at 10%, Nintendo probably keeps pricing at USD 450 and just takes the hit on margin. This contrasts sharply with his prediction that under a 46% Vietnam tariff scenario, prices could have increased by USD 50 to USD 100 – a substantial jump that would have affected consumer demand.
Key Facts:
- Nintendo Switch 2 launch price: USD 450
- Current US import tariff on Vietnamese goods: 10%
- Proposed (now delayed) US import tariff on Vietnamese goods: 46%
- Potential price increase under higher tariffs: USD 50-100
- Nintendo Switch 2 release date: June 5, 2025
- Tariff delay period: 90 days
Supply Chain Opportunity
The 90-day window provides Nintendo with a strategic opportunity to build up inventory within the United States ahead of any potential future tariff increases. By accelerating shipments during this period, the company could mitigate some of the risks associated with the uncertain trade environment, potentially ensuring better availability when the console officially launches on June 5.
Broader Industry Impact
Nintendo isn't alone in facing tariff challenges. Other tech companies including Framework, Razer, and various small businesses had already announced pauses in US sales or shipments due to the tariff situation. Framework had specifically halted sales of certain laptop models, while Razer took the dramatic step of pausing nearly all laptop sales to the US market.
Other Companies Affected by Tariffs:
- Framework: Paused sales of specific laptop models
- Razer: Paused nearly all laptop sales to US
- Jaguar Land Rover: Paused vehicle shipments to US
- Basic Fun (toy manufacturer): Paused shipments of China-made products
- Swiss watchmakers (Audemars Piguet, Breitling, Rolex): Paused shipments
Future Uncertainty Remains
While the 90-day delay offers temporary relief, the long-term trade situation remains fluid. Companies and consumers alike face continued uncertainty about what might happen when the delay period expires. Nintendo and other affected businesses will need to develop contingency plans for various tariff scenarios while hoping for more permanent trade solutions.
What This Means for Gamers
For gaming enthusiasts who have been eagerly following news about the Switch 2 since its announcement, this development suggests that Nintendo may be able to maintain its planned USD 450 starting price point. It also increases the likelihood that the company will resume US preorders soon, giving American consumers the opportunity to secure the console ahead of its official release.