Nintendo’s Switch 2 Could Be Doomed Even Before Release As Possible Tariffs Could Hike Prices Massively
As Nintendo reportedly gets ready for the release of its Switch 2 console, the import tariffs proposed by U.S. President-Elect Donald Trump earlier this year during his campaign trail could have major repercussions.
Although the exact release date of Nintendo’s Switch replacement is still unknown, indications suggest that it will happen in 2025, and Trump’s proposed tariff policies may result in significant price increases for the product in the US market.
Trump’s Policies May Raise the Cost of Switch 2
Nintendo stated in early May that the Switch 2 console would be unveiled by March 2025 at the latest. Although Nintendo has not yet confirmed the rumors, several industry insiders had already conjectured that the console would be released in March 2025 before that announcement.
With that deadline approaching, some in the industry are worried about the price of the Switch 2 due to Trump’s proposed tariff policies during his campaign, which include a 20 percent tariff on all imported goods and tariffs rising to 60 percent for products coming from China.
Regarding the tariffs, industry insider Jeff Grubb has voiced concerns about the possible price of the Switch 2 release in the event that the proposed tariffs are implemented. “There’s a lot of ins and outs, but mostly just think of it this way: everything is going to be taxed as it comes into the country, and that cost will get passed onto consumers,” he stated in a recent video.
Tariffs are levied by the government against businesses that import goods from other countries. They can be used to both increase government revenue and discourage businesses from using goods made abroad. Nonetheless, there is growing concern that importers will raise the price of the goods they sell to offset the fees they are required to pay, making them more costly for consumers.
What Is the Future of the Switch 2?
At this stage, concerns regarding the Switch 2’s launch price are purely hypothetical. Trump’s inauguration is scheduled for January 20, which is over a month ahead of the Switch 2’s earliest possible release date. A few votes from the opposing party could thwart any of Trump’s future plans for the nation, even though his Republican Party is predicted to maintain slim leads in both chambers of Congress.
The Constitution gives Congress the authority to impose tariffs, but the legislature has a history of giving the president the authority, so it’s unclear if Trump would be able to do so without the legislature’s consent.
How the Switch 2 will be categorized is another issue. The nation from which goods are imported could have a significant impact on the rate at which tariffs are applied, according to Trump’s earlier remarks.
Despite being a Japanese company, Nintendo’s campaign trail claims are ambiguous and do not clarify whether a particular chip or other component of a product could have an impact on the overall tariff percentage of the product.
A 60% tariff passed directly to consumers could push the price of the Switch 2 closer to the $800 range, according to an industry analysis conducted by Toyo Securities analyst Hideki Yasuda prior to the election.
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