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How Nintendo dodged Trump’s tariffs and saved the Switch 2 release
- Nintendo fans in the US were worried about potential tariffs affecting the release of the Nintendo Switch 2 console.
- The launch of the Switch 2 coincided with a 90-day tariff pause issued by Trump, allowing Nintendo to avoid immediate price hikes.
- Future tariffs on countries like India and Japan could pose challenges for Nintendo and its trade policies.
- Nintendo shifted some Switch production from China to Vietnam to mitigate US tariffs but faced new challenges when tariffs targeted Vietnam.
- The Trump administration's tariff backpedaling, known as 'taco' (Trump always chickens out), saved the Switch 2 from potential delays or cost increases.
- Nintendo may still face price adjustments on accessories due to tariffs, such as docks and controller straps seeing price increases.
- Concerns remain about potential price hikes for the Switch 2 during the holiday season if Vietnam tariffs are implemented.
- Majority of Nintendo's revenue comes from software and online subscriptions, which are not impacted by tariffs, influencing their pricing strategy.
- Competitors like Sony and Microsoft may also face similar challenges with tariffs affecting new console releases in the future.
- Nintendo has already shipped around 746,000 Switch 2 units to the US, potentially avoiding higher tariffs before negotiations with Vietnam conclude.
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