Key Takeaways
- President Trump’s decision to reduce tariffs to a flat 10% for over 75 countries has led to a major rebound in global markets.
- Nintendo has postponed the U.S. pre-order launch of its upcoming Switch 2 console while it assesses tariff impact.
- There are growing concerns Nintendo’s upcoming console could raise its price if tariffs increase again.
A rollback on some of the most severe U.S. tariffs has triggered a rebound in Nintendo’s stock and Japan’s Nikkei 225 index.
On Wednesday, April 9, U.S. President Donald Trump reversed his stance on strict international tariffs, announcing a universal “lowered reciprocal tariff of 10%” as trade negotiations continued.
Nintendo and Japanese Stocks Climb
Global markets have been declining over the past week amid fears that a trade war with the U.S. could harm the global economy.
However, Trump recently stated on Truth Social that he would pause tariffs on more than 75 countries that are currently engaged in negotiations.
This includes Japan and Vietnam—originally subject to tariffs of 24% and 46%, respectively—where the bulk of Nintendo’s hardware is manufactured.
On Thursday, April 10, Nintendo’s stock surged 11.7% from the opening of trading, signaling renewed optimism among investors.
Meanwhile, Japan’s benchmark Nikkei 225 jumped 9% following the easing of tariffs on Japanese goods.
Switch 2 Delayed
Nintendo, which had recently relocated a significant portion of its manufacturing to Vietnam to avoid earlier tariffs, has been directly impacted by these policy shifts.
The Nintendo Switch 2, scheduled for release on June 5, has delayed its U.S. pre-order window as the company evaluates the financial implications of the revised tariffs.
Doug Bowser, CEO of Nintendo of America, told NPR that the console’s pricing had not accounted for tariffs and declined to rule out potential future price hikes.
“We’re actively assessing the impact, but we have nothing further to announce regarding pricing at this time,” Bowser said.
Concerns Over Price Increases
Nintendo’s delay has sparked concern among gamers that the Switch 2—currently priced at $450—may see a price increase to offset reduced profit margins caused by tariffs.
The Switch 2 is expected to be one of the biggest gaming releases in history.
It is the long-awaited sequel to Nintendo’s 2017 Switch, which has become Nintendo’s best-selling home console and the third-best-selling game console of all time.
Bernstein analyst Robin Zhu told Bloomberg that he believes the price will remain unchanged if tariffs stay at 10%.
“At 46% Vietnam tariffs, I expected them to raise the price by $50 to $100,” he added.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
