Trump Tariffs Could Be Bad News for the Switch 2

by

Key Takeaways

  • Trump’s proposed tariffs could significantly increase the price of the Nintendo Switch 2.
  • Industry insiders express concern over potential price hikes due to tariffs.
  • Uncertainty remains regarding how tariffs will impact the classification and price of the Switch 2.

As a seasoned gamer with decades of gaming under my belt, I can’t help but feel a twinge of concern about the potential impact of Donald Trump’s proposed tariffs on the upcoming Nintendo Switch 2 console. Having seen the evolution of gaming prices over the years, I can only imagine how steep the price tag might climb if these tariffs are enacted.

The import taxes proposed by President-Elect Donald Trump during his campaign earlier this year might bring significant challenges for Nintendo, given their plans for the launch of the Switch 2 console. Although a specific release date for the Switch 2 has not been announced yet, indications suggest it may hit the markets in 2025. If Trump’s suggested tariff policies are implemented, the U.S. market could see a substantial increase in prices for Nintendo products.

By early May, Nintendo has officially stated that they will unveil the next-generation Nintendo Switch console no later than March 2025. Long before this announcement, various experts within the gaming industry had already suggested that the console would likely be launched in March 2025, although Nintendo has yet to confirm these predictions. As the release date approaches, there’s a growing sense of anticipation – and some apprehension – about the potential impact on the Switch 2’s price due to former President Trump’s proposed tariff policies. During his campaign, Trump suggested implementing a 20% tariff on all imported goods, with this figure rising to 60% for products originating from China. This has sparked concerns within the gaming industry about the possible increase in cost for the Switch 2.

Expert Jeff Grubb has voiced concerns about the potential cost of the Switch 2 if proposed tariffs are implemented, stating in a video that essentially, all imported goods will be subject to taxes, and these costs will ultimately be borne by consumers. Tariffs are fees enforced by governments on companies importing products from outside their borders, serving two purposes: generating income for the government and encouraging businesses to use domestically produced goods instead. However, there’s growing anxiety that importers might compensate for the levied fees by raising the prices of their goods, making them more costly for buyers.

Trump Policies Could Jack Up the Switch 2’s Price

As a gamer, I can say that there’s been quite a buzz about the anticipated price of the Switch 2 at its launch, but honestly, it’s all speculation right now. We still got plenty of time before we even see the tiniest glimpse of the Switch 2, not until well after Trump’s inauguration on January 20th.

There’s uncertainty about how the Switch 2 will be categorized, which could significantly impact the tariffs imposed on it. Trump’s past remarks suggest that the origin of goods could play a significant role in this determination. However, his campaign trail comments didn’t clarify whether parts from different countries, such as a specific chip, would influence the overall tariff percentage applied to the product as a whole if Nintendo, a Japanese company, manufactures some components elsewhere. Before the election, an industry analysis by Hideki Yasuda of Toyo Securities projected the Switch 2’s price to be under $500. Yet, if a 60% tariff were passed on directly to consumers, it could potentially raise the price to around $800.

Read More

2024-11-15 22:13