Financial Times: Nintendo Switch 2's high price may be due to trade tariffs imposed by Donald Trump
The price of the Nintendo Switch 2, which is $450 in the US, may have been inflated due to trade tariffs imposed by US President Donald Trump. Analysts believe that Nintendo may have included a "safety cushion" in the price, anticipating the impact of possible tariffs.
Here's What We Know
Trump has been imposing tariffs on numerous countries in recent weeks, including a significant tariff on China, where many of the company's technology products are manufactured. He has also imposed an overall 10% tariff on all imports, with tariffs on countries such as China and Japan - which Trump calls the "worst offenders" - at 54% and 24% respectively.
A Financial Times report suggests that the Switch 2's price is a sign that Trump's tariffs will affect video game prices.
Serkan Toto, a Japanese video game analyst and founder of Kantan Games, told the publication that he believes the Switch 2 price takes into account Trump's recent behaviour, saying the price "suggests Nintendo is building a buffer in case the tariffs hit supply harder than expected".
A separate Financial Times report last month showed that Nintendo is already moving production out of China. Already, more than half of the equipment Nintendo imports to the US comes from Vietnam and Cambodia.
However, the tariffs imposed by Trump - which he said would take effect on 9 April - include a 46% tariff on Vietnam and a 49% tariff on Cambodia.
According to FT sources, hundreds of thousands of Switch 2 consoles have already been shipped from Vietnam to Nintendo's US factories since the start of the year, possibly in anticipation of such a move.
Source: Financial Times
