While PCs and smartphones will be exempt from Trump’s retaliatory tariffs in the US, consoles will not.
That’s according to former GamesIndustry.biz boss Chris Dring, who confirmed in his newsletter, The Game Business, that not only could Nintendo’s upcoming Nintendo Switch 2 console be impacted by the tariffs, but so too will PlayStation and Xbox’s hardware.
At the time of writing, it’s unclear if the exemptions for other tech components like SSDs and PCs were intentionally not applied to consoles or if it’s merely an oversight. On the plus side, it looks as though Nintendo Switch cartridges will be spared the extra 125% levy.
Nintendo had already directed the vast majority of its Switch 2 manufacturing output from Vietnam towards the US over the first two months of this year, as the threat of Trump’s now-confirmed tariffs loomed, but the stinging tariffs applied to Vietnam – a key manufacturer for Nintendo – and China continue to cause considerable uncertainty.
This may also have the ripple effect of piting Asian players against US game studios.
“It is not far-fetched to think that even if ‘a deal is struck’ for tariffs and other issues between the US and China, Chinese consumers would protest the economic uncertainty by avoiding US products and even by avoiding US technology and games,” said Lisa Hanson, CEO at Niko Partners.
“In fact, Chinese social media already has consumer discourse about a consumer-led rebuke against US-products. The same could become true in Vietnam, Japan, South Korea, Thailand and so many other countries. Chinese regulators could very well block US games from ISBNs, and may even take a closer look at blocking Steam International, which is currently a major part of China’s gaming ecosystem despite officially illegally operating.”
Earlier this month, US trade group the Entertainment Software Association said the Trump administration’s tariffs will “have a real and detrimental impact” on the video games industry as a whole. David Cole – founder of games industry marketing and research firm DFC Intelligence – told Eurogamer his firm expected Nintendo to stick with its $450 launch pricing for Switch 2, despite temporarily briefly pausing pre-orders in the US and Canada. Pre-order invites for American players are now expected to go out “starting 8th May”.
For more on the upcoming console, here’s everything announced at the Switch 2 Direct, including pricing, games, and more.