Nintendo's Switch 2 Launch Gets Timely Boost from Trump Tariff Pause

Kyoto, Japan — April 11, 2025 — Nintendo’s highly anticipated Switch 2 console is poised for a strong launch in the U.S., thanks to a crucial 90-day pause on Trump-era tariffs that could have derailed pricing and logistics. The temporary halt allows Nintendo to flood the U.S. market with consoles, easing concerns about supply, pricing pressure, and launch disruption — at least for now.

90-Day Reprieve Eases Tariff Threat on Vietnam Production

President Donald Trump’s reinstated tariff regime imposed sweeping 46% levies on imports from Vietnam, among other nations. However, a 90-day delay gives Nintendo — which assembles nearly a third of its Switch 2 units in Vietnam — a narrow but vital window to prioritize shipments to the U.S., which accounts for over one-third of the company’s global sales.

Instead of the 46% hike, Nintendo will only contend with a universal 10% import tariff during the grace period. That means the company can keep its $450 retail price point, even if it must accept tighter margins.

“If the tariffs stay at 10 percent, Nintendo probably keeps pricing at $450 and just takes the hit on margin,” said Bernstein analyst Robin Zhu. “At 46 percent Vietnam tariffs, I expected them to raise by $50 to $100.”

Global Supply Chain Push and Pricing Strategy

Following its global reveal, Nintendo paused U.S. preorders to re-evaluate shipping logistics and pricing in light of the tariff announcement, which came just hours after the console’s official unveiling. The company’s strategy now involves maximizing Vietnam-based shipments during the 90-day period and working to avoid scalping and supply shortages.

In the UK, Nintendo is prioritizing existing Switch Online members with significant play history, hoping to reward loyal gamers and curb bulk buying by resellers.

High Stakes for Nintendo — and Its Rivals

Shares of Nintendo jumped 10% in Tokyo trading on Thursday, reflecting market optimism surrounding the tariff reprieve. Analysts say the stakes couldn’t be higher: the Switch 2 represents Nintendo’s only major platform moving forward, with no alternative strategy in place.

“There’s no plan B,” said Hideki Yasuda of Toyo Securities. “The Switch 2 is essential for keeping Nintendo’s franchises alive and monetizing its intellectual property across games, film, and merchandise.”

Sony, whose PlayStation 5 is primarily produced in China — now facing a 125% tariff — is likely to be hit harder. Experts warn that PS5 price hikes in the U.S. could soon follow.

Retail, Logistics, and Long-Term Uncertainty

Nintendo’s decision to delay preorders reflects its careful risk assessment in a volatile trade climate. Like PC makers earlier this year, it may adopt a stockpiling strategy to cushion against further disruptions.

Although the tariff pause has granted Nintendo breathing room, uncertainty looms. If elevated tariffs resume after the 90-day period, Nintendo may be forced to reassess its U.S. pricing strategy yet again.

Still, with the Switch 2 launching globally on June 5, the company is laser-focused on executing a successful launch window — widely considered make-or-break in the console industry.