Photo credit: www.theverge.com
Nintendo Positioned for Success Amid Tariff Changes
In a notable shift in trade policy, President Donald Trump has implemented a “90-day pause” on high tariffs affecting several countries, presenting an advantageous scenario for Nintendo. This adjustment allows the company to increase shipments of its anticipated Switch 2 units from Vietnam to the United States, as recent customs data indicates that Nintendo has been proactively stockpiling these units ahead of the console’s launch on June 5th.
Prior to this pause, the Trump administration had enforced a significant 46 percent tariff on imported goods from Vietnam, where Nintendo produces a portion of its gaming hardware. The imposition of these tariffs led to the company postponing its initial April 9th preorder date for the Switch 2 in the US. Currently, a reduced 10 percent tariff is applicable to imports from nations that have not retaliated against Trump’s tariffs, facilitating a more favorable shipping landscape for Nintendo as it brings consoles from Vietnam to the US market.
Nintendo has communicated that it has already dispatched “some” Switch 2 inventory to the US, potentially positioning itself to meet what is anticipated to be a surge in demand for the new console. Reports from Bloomberg highlight that one of the main assemblers of the Switch 2 in Vietnam has substantially increased its shipments to the US over the last few months.
According to Bloomberg, “Hosiden Corp., one of three primary assemblers, shipped more devices in February to the US from Vietnam than it had in the preceding six months combined,” based on customs data sourced from NBD. This data reveals a substantial increase in exported game consoles, with Vietnam sending 383,000 units to the US in January and over 725,000 units in February alone.
As of now, Nintendo has not disclosed when it plans to open preorders in the US and Canada, nor has it indicated if the Switch 2 will be priced higher due to the tariffs. However, with the temporary reduction in tariffs, it appears that Nintendo is strategically poised to maximize its shipments of Switch 2 consoles to the US market prior to the potential reinstatement of higher tariffs in the future.
Source
www.theverge.com