An internal assessment sent by a major supplier to both Nintendo and Apple has warned that video game consoles are in line for a 145% US tariff.
According to Nikkei, one of both firms’ major component suppliers has warned the tech giants to expect a large hit when importing goods, namely the Nintendo Switch 2, to the US.
While iPhones and some computers have been made exempt from Trump’s sweeping tariffs, video game consoles have not, leading many to question if Nintendo will increase its previously announced US price plan, which would see the console retail for $449.99.
According to the report, a majority of Nintendo Switch 2 consoles are being made in China, with only a “relatively small proportion” being made in Vietnam.
Nintendo boss Doug Bowser has said that the firm has spent months shipping hundreds of thousands of Nintendo Switch 2 units to the US already.
Earlier this month, only days after announcing the console’s price, Nintendo said it was delaying Switch 2 pre-orders in the US (and later Canada) so it could assess market conditions due to the country’s turbulent financial situation.
Subsequently, it was announced that while Trump has increased China’s tariff up to 125%, he has decided to pause all other tariff hikes for 90 days, meaning his 10% tariff applies to all other affected countries, including Vietnam.
According to a report from Bloomberg, Trump’s decision to pause the hikes means it’s likely that Nintendo will keep the US Switch 2 price at $450, at least until the 46% tariff kicks in.
Earlier this month US video game trade group the Entertainment Software Association (ESA) warned that the trade tariffs imposed by US president Donald Trump “are going to have a real and detrimental impact” on the games industry, especially if the hikes beyond 10% are also implemented.
