Trump Tariffs Could Be Bad News for Switch 2

Key Takeaways

Trump's proposed tariffs could cause the price of the Nintendo Switch 2 to rise significantly.
Industry officials are expressing concern about the possibility of price increases due to tariffs.
There still remains uncertainty about how tariffs will affect the Switch 2's classification and pricing.

Import tariffs proposed by President-elect Donald Trump on the campaign trail earlier this year could have serious consequences, including: nintendo It is reported that the Switch 2 console is being prepared for release. There's no confirmed release date for Nintendo's Switch sequel yet, but signs are showing it will launch in 2025, and Trump's proposed tariffs could lead to a big price tag increase in the U.S. market.

In early May, Nintendo confirmed that the Switch 2 console would be revealed by March 2025 at the latest. Even before that announcement, several industry insiders had already speculated that March 2025 would be the month the console launches. We have yet to confirm that claim. With the deadline looming, tariff policies proposed during President Trump's campaign, including imposing a 20% tariff on all imports and increasing tariffs to 60% on Chinese products, have raised concerns among some in the industry. It's causing it. Potential for the Switch 2's price.

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Industry insider Jeff Grubb weighed in on the tariffs, expressing concerns about the potential price point of the Switch 2 release if the proposed tariffs are enacted. “There are a lot of ins and outs, but most people think this way: Everything that comes into the country will be taxed and the cost will be passed on to the consumer,” he said in the video. Tariffs are government-regulated fees paid by businesses importing goods from abroad and can be used for two purposes: to increase revenue for the government and to influence businesses not to use foreign goods. However, there are growing concerns that importers will increase the prices of the goods they sell, offsetting the fees charged, leading to higher prices for buyers.

Trump policy could increase the price of the Switch 2

At this point, any concerns about Switch 2 launch price are just speculation. Trump's inauguration is scheduled for January 20, more than a month before the Switch 2's potential initial release window. Trump's Republicans are expected to maintain slim leads in both the House and Senate, but a few votes from across the aisle could stymie anyone. His potential plans for the country's future. It is unclear whether Trump would be able to impose tariffs without congressional approval because the Constitution grants tariffs to Congress, but the legislature has a history of delegating that authority to a sitting president.

There are also questions about how Switch 2 will be classified. According to Trump's previous comments, the country from which goods are imported can have a big impact on the rate at which tariffs are levied. Although Nintendo is a Japanese company, the vagueness of its campaign tracking claims does not specify whether parts of the product, such as specific chips, can affect the overall tariff rate for the product as a whole. Before the election, an industry analysis by Toyo Securities analyst Hideki Yasuda predicted the Switch 2's price range would be under $500, but a 60% direct-to-consumer tariff could push it closer to the $800 range.