Nintendo “Establishing Ways To Respond” To U.S. Tariffs, Says Furukawa – Nintendo Life
GuestGuestLogin | Sign UpNintendo LifeGuestLogin or Sign UpExpects minimal financial impactEarlier this month, the current U.S. administration implemented an additional 10% tariff on all goods imported into the country from China. While the full effect of this increase is yet to be seen, it poses a potential price hike for consoles and accessories developed in China, which, naturally, is a cause for concern to both consumers and developers.Acknowledging this, Nintendo president Shuntaro Furukawa has said that the company is looking into the potential impact that the tariffs could have on the upcoming financial year and the launch of the Switch 2. As reported by Reuters (and translated by Nintendo Everything), Furukawa explained in a press conference that the company is “predicting various geopolitical risks and establishing ways to respond”.“Nintendo Switch is not only manufactured in China,” Furukawa noted, “but in places such as Vietnam and Cambodia as well”.With many Switch consoles already imported into the US by the time the tariffs came into effect, Furukawa suggests that there should be little financial damage this fiscal year: “While we anticipate a certain impact, the influence on this year’s financial results is expected to be minimal”.The Nintendo president didn’t comment specifically on FY2025/26 and the launch of Switch 2, though there’s every chance that the impact may be greater.Nintendo expanded its manufacturing operations outside China in 2019, when proposed tariffs once again threatened to drive up prices. In a rare display of unity, Nintendo, Sony and Microsoft joined forces to pen a letter to the US government, warning of the tariffs’ negative effects on the gaming industry should console sales not be exempt from the increased taxes.The letter led to a successful outcome for the companies in 2019, though, six years later, no such exemptions currently seem to be in place. We’ll have to wait and see just how “minimal” of an impact the price increase has on consumer spending when there’s a hot new console on the market.United as oneIf we hear any updates on the tariffs and the effect that they may have on Switch 2 sales, we’ll let you know.[source jp.reuters.com, via nintendoeverything.com]About Jim NormanJim came to Nintendo Life in 2022 and, despite his insistence that The Minish Cap is the best Zelda game and his unwavering love for the Star Wars prequels (yes, really), he has continued to write news and features on the site ever since.Comments 81Removed – unconstructiveCan’t wait for an intelligent discussion on politics, with a flavor of name calling To be honest about the tariffs, I’m concerned over food and other necessities and not video games. I do hope for our hobbies sake it won’t be extremely expensive.This is what I was talking about to my wife earlier this month. I am expecting the Switch 2 to retail for $399 in the US. If the tariffs affect the price I am totally expecting that price to go up to $450In other words charge the consumer more because that is the only thing tariffs are actually good for and we live in a hellworld.Removed – unconstructiveTariffs won’t stop China from creating games that I love to play. I don’t care. All involved parties can have the honour of my middle finger, and I mean both the givers and receivers.Just want to say …maybe not the best idea leaving comments open on this one.If there’s one survival tip the nightmarish hellscape that is the modern internet has taught me, it’s to avoid bringing up things even the slightest bit related to another thing coloured orange …as it almost always ends up with everything just getting soaked in red.Good for them for writing a letter. It’s definitely reassuring that Nintendo has a backbone.I find it humorous that each Switch Console will release on the first year of this president’s terms.Hahaha!!! The first comment was the first casualty!!! I saw it in real-time. I love the mods of this site!!Ironic that a longstanding theory on why Switch 2 is taking so long to release was in expecting parts to become cheaper over time, only to now have distribution take a massive cost.This does concern me a bit. I wasn’t planning on being a super early adopter, but I might buy early in case this situation causes Nintendo to raise prices. Or I might adopt late if prices start off too high because it’s possible they could drop (like the 3DS). The way inflation is going and how Sony had to raise prices for the PS5 gives me a bad feeling on how Nintendo might have to handle pricing for the Switch 2.Companies will find a way either around the tariffs, or when selling to the rest of the world, around America entirely, the world will keep on turning, and the purveyors of luxury goods (Like, say, video games) will be wary of making things too expensive.I’m not worried at all. All of this will subsidize in due time, and we will all be better for it. Besides, Nintendo needs incentive to make better quality products.Expected (and also proven as there are already a couple of removed comments) spiciness of this comment section aside, glad to hear that this factor shouldn’t particularly matter at the very least this year and so for the launch of Switch 2 – fingers crossed that continues to be the case the following ones, too!Well, here’s hoping Trump 2 won’t hurt Switch 2 that much here. Kinda creepy how Trump and Nintendo Switch have aligned so much…Look, I have my concerns about Switch 2, but an inflated price would be the last thing to keep me from buying one this year if I determine that it’s worth it.It would be cool if they could manufacture switches in America. Doubtful thoughThe Chinese ain’t going to pay for the tariffs, they are going to make the USA people pay for it by adding that 10% tax hike to their own goods for purchase. Adding more tax to something only makes it worst. It’s like going to the restaurant nowadays, you raise the minimum wage, they raise their menu price and the dining/delivery fee while laying off 20% of their workforce. The customers and workers will continue to lose while the corporation continues to reap all the money while the feds still pretends they did something smart which they didn’t.@batmanbud2How long are you anticipating “in due time” to be?What do you quantify as “better for it”?Removed – flaming/arguingTariffs are IMPORT TAXES, paid by the US importer and passed on to the consumer.When Nintendo is speaking to the impact of tariffs, it’s not to the bottom line. They don’t pay tariffs. Americans do.The impact potential is to the TOP LINE, meaning they might sell less consoles because in the US because they could cost much more then MSR and price some customers out. This is again, and I can not stress this enough, because 100% of tariffs are paid by Americans.”We are putting a 25% tariffs on goods from China” is a way of saying “Everything you buy in America that is from China will now cost 25% more, because it will have a 25% tax that you need to pay.”@Vil Can’t avoid things forever, I believe it is important to have these conversations in a civil manner mind you.@defective1up I’m not suggesting Nintendo will abandon America, but they’ll just move shipments for other countries around the place, to avoid incurring tariffs.@defective1upWhich tariffs and countries are you referring to?I doubt the Switch 2 is going to cost 25% more in the US than the UK surely. All I’ll say is…if it does, don’t start importing UK ones and make it harder for me to get one! You voted for this. You pay for it lol. (joking.)I totally understand how something like this could quickly derail into political pettiness. While i am concerned how much this will impact prices for costumers, i urge everybody to step back and consider that videogames, as a hobby, are a luxury good. Like, the fact that Sony felt comfortable setting that PS5 pro price, is indicative of a lot of stuff. I suspect videogames were the last thought of the electorate that decided in majority for another Trump presidency. Right or wrong, just keep that in mind.@HeadPirate Wouldn’t the one way Nintendo won’t make US customers pay more and avoid high tariffs is if they send units that were manufactured in Vietnam to the US?I remember the days when Nintendo manufactured their hardware in their own facilities, and they were considered near unbreakable. “Nintendium”?@teo_o I appreciate this very sober perspective. We are really so blessed have our fun tech and it’s not like we have a right to any of it at any cost.@Uncle_Franklin That’s the neat thing: Arguing in ambiguity means you can never be proven wrong! Ignore the warnings from economists, historians, and even the companies themselves, and just have faith that it’ll all work out for the greater good eventually!Why aren’t comments closed we know this comment section will go crazy. Like if we’re gonna get rid of half the comments might as well have them closed.Tbh not expecting this to effect the US much, people were overreacting before and Nintendo doesn’t seem effected whatsoever.@HeadPirate 25% higher cost to the manufacturer doesn’t equate to that it should cost 25% more to the consumer.
For a long time, product distributors have exploited the incredibly low wages and regulation of China to raise their profit margins.
Even when I was in school, they were teaching about how a $100 pair of Nike sneakers probably cost Nike about $5 to make. Something along that idea.
Though, asking the CEOs to eat some of that cost out of their huge salaries. No, that isn’t happening.@MrCarlos46That’s up to Nintendo. But that would increases there manufacturing cost, so it’s a lose lose situation. Nintendo needs to work out if there is more risk from lost sales, or more risk from spending money setting up new supply lines. In a climate were new tariffs are being interduce to new countries every day, why bother? You might spend millions shifting to manufacturing in country X, only to see country X get a seemingly random 100% tariff, and China’s tariffs might go away at any time.The one thing you want more then anything in trade is stability. So just ignoring what the erratic and unstable country is doing and focusing on increasing sales elsewhere is always going to be the better plan.Worst case they’ll raise the price everywhere else to keep it more affordable for US customers.@KingMike You didn’t read. The import tax (aka Tariff) is paid by who is importing the goods into the US.That means anyone who ordered Switches and Switch 2s are the ones paying the tariffs.A cost per unit they will likely pass on to the consumers. It’s not that hard to grasp.My comment getting removed made it seem much worse than it was.Also no we don’t pay tariffs unlessA. Business increases prices.B. Customer buys product anyway.While I am nervous (curious really. Nervous is a poor choice of words) about pricing I am going to wait for the Zelda edition anyway so I figure that will be 4-5 years from now (I am expecting a 2026 launch for the S2…which I have been saying for years). Time enough for tariffs to expire (they don’t just go away with the stroke of a pen) and hopefully prices to stabilize (at least Nintendo does price cuts as adjustments) or for me to have saved up enough money anyway (Also saving to build a new gaming PC rig). I always budget for a system and 5 games whenever I move to a new ecosystem anyway. Not a fan of having a box and nothing to play (I won’t be migrating much of my existing switch library over. Paid for my Zelda OLED (and lite), so I will use them.) Right now though? My goal is second full time job ASAP. (The United States of) America’s nonsense is gonna impact my elderly parents and I need to be in a better position to help them.I feel truly sorry for all those in the US. I’m glad I live in Europe, but the impact the US has on an international is felt all across the globe, sadly.@OverzealWhy do you not consider business owners as part of “we”?@KingMikeManufacturing cost is the same, because a tariffs doesn’t effect Nintendo’s cost. It’s just a tax on import. If you’re a retail store and you want to import a Switch that was made in China, you need to pay a 25% tax on the already marked up price Nintendo charges retailers, not on the manufacturing cost.So you can either absorb the extra money by lowering your gross margin, or you can keep margin the same by having the costumer pay the tax. As you pointed out 100% of the time they do the latter.If you were talking about how a US made product might react to a impart tax on steel, sure there is nuisance like you are pointing out. But for importing premanufactured goods, it’s much more cut and dry, and that’s what this conversation is speaking to; importing a Nintendo Switch and selling it.I was prepared to stop purchasing new consoles if the makers decided to go digital-only or if they required an internet connection to play purchased games (see the recent PSN outage preventing players from playing completely offline physical games). I have hundreds of unplayed games to fall back on. Similarly if tariffs skyrocket the Switch 2’s retail price, then I will wait it out. And if the Switch OG is the last console I buy in my lifetime, so be it. That backlog of mine needs to go on a diet.Every time I have grievances with my government (often) I remember at least I’m not American. Tariffs are just another entry in the schlong swinging compendium and Nintendo are one of many, many companies affected.Nintendo will probably just do what is sensible. Which is to just charge 10% more than what they intended to in the US.@Wisestfool That’s looking at the bright side of life.@GrailUK risky, but funny 🤣@KingMike that’s not how it works. Yeah it takes $5 to make, but you have to take into account all kinds of expenses, marketing, production, salaries, maintenance of the production hardware, transportation, etc that raises the cost. I mean, probably not up to $100… but you catch my drift and I get what you mean.@Summer235I’m with you generally 👍”I’m concerned over food and other necessities and not video games. I do hope for our hobbies sake it won’t be extremely expensive.”I share your concern, and I will point out that for all working class people but the very poor, it will be videogames et al as opposed to food and necessities that will take the hit in our budgets, all told. Regardless of which is more directly affected by tariffs. ✌️Not a disagreement, just an observation.@MysticX thank you for elaborating, I agree with you on that.Lots of accurate comments here, but still a surprising amount of misunderstanding. The US government will collect a 10% tax on US citizens/importers. Nintendo will not pay the tax, and they’re unlikely to change their prices much: it depends on how much they prioritize maintaining US market share, but seeing that the US isn’t manufacturing PlayStations and XBoxes locally either that’s not really at risk anyhow.If the Switch becomes more expensive in the USA because of Trump, well… If you choose to go to a circus you’re gonna get clowns.Nintendo to file a retrospective patent on tarriffing video games and associated hardware?@HeadPirate In this instance it wouldn’t increase manufacturing costs further because they wouldn’t be setting up new, additional supply lines as the ones in Vietnam and Cambodia already existed to begin with.I’m hoping their response includes some combination of Pacific Rim mechs and Godzilla kaiju. Surely they’re kept in a secret bunker somewhere just waiting for the right moment to unleash them. And that moment is nigh.@HeadPirate @IceClimbers Nintendo already started sending some production to Vietnam following Trump’s first attempt on imposing Chinese tariffs in 2019.I’m not paying more than $300 on a Switch 2 no matter what. I have enough games on Switch 1 to last me years. I’m happy with it.@AmplifyMJ Well sod it, if the US is going to look out for number one for the next four years, so am I! Nothing is going to lower my chances of a day one purchase hahaha (Again, my tongue is firmly in my cheek.)@Ryu_Niiyama That’s admirable that you’re thinking of how this affects your parents@Wisestfool My backlog’s insane too. I have already almost maxed out 2TB for SwitchTrumpy Dumpy doing his orange best to trash our economy. Such a fun era to live through /sI have tried to say something about this but I can’t manage to use nice words.Thanks to NintendoLife for not using his picture for the article! My day could have gone a lot worse.From what I have read, Trump wants to impose tariffs on ALL imports, regardless of which nation they come from. So even if Nintendo were to manufacture the Switch 2 in a country other than China, it would still be subject to tariffs regardless. One can only hope that Nintendo would be willing to sell the Switch 2 at even more of a loss than they previously would have to keep prices low for the consumer.All they’d have to do is stop having everything manufactured in China. Funny how these corporations are never held responsible for the way they have long exploited China’s appalling human rights issues when it comes to workers. The desire for cheap labor to make an extra buck always seems to be the last thing anyone is willing to abandon.@Mando44646 Pretty sure the sleeping dog before him did a pretty good job himself@JayJ Read the whole article. The Switch is not only manufactured in China but also Vietnam and Cambodia.@JayJ do you really think a country that’s funding genocide and with really weak union representation domestically cares about working conditions abroad? They just want the most efficient and reliable supply chain.I was expecting a lot more comments removed. No doubt Nintendo will navigate whatever comes down the pike well. They haven’t been around this long without figuring out how to weather a storm. He’s obviously not as big a personality as his predecessor but Furukawa definitely has his head on collected & straight as Iwata did.I agree with others, video games are a luxury. No one NEEDS to have the Switch 2. I’m a huge fan of living in the USA. I spend most of my year between there and China (which I’m currently in). I love living in China as well. The thing I can say about the USA is even our poorest people are rich compared to a lot of the world. I’m not saying our poorest have BMWs but even a lot of our poorest people still have food (maybe not the best), shelter, indoor plumbing, a wireless smart phone, a refrigerator, a stove, a microwave, and a lot even have a car. Our poor live pretty well compared to a lot of other countries and we shouldn’t take that for granted.Is the US Perfect? No. But, I’m very happy living here and I think all citizens should take the time to appreciate all we have.I hope to have a switch 2 as soon as the Splatoon 4 edition comes out. No matter what the costs, I’ll buy it Day 1. Why? Because I have budgeted money to buy this for the last few years. I knew there would eventually be a Super Switch or Switch 2 so I put money aside. Even $10 a week for 2 years is over $1,000. So when it comes out, the only game I’ll probably want is Splatoon 4 and a Mario Game. I have enough backlog of other games to play.There’s no price yet. Likely tariffs will increase the final price.Before tariffs $399
Tariffs $450 to $499My guess..@Coalescence I feel like Trump supporters are generally too shy to comment on this tariff fiasco, as most of them didn’t knowingly vote for it.@Summer235 If Farmers (produce and meat) come back, instead of being outsourced, tariffs wouldn’t be an issue.Same as with motor vehicles and other industries.And yet, Digital will STILL be as expensive as Physical!I am vouching for the american people and nintendo. this is just another example of politics interfering with happiness@cedarhyped Man has been screaming about enacting more tariffs for years. If they didn’t know what this was going to do it’s because they refused to look up.I fear that physical games will be a casualty of any global trade war. Literal worst timeline.Most of samsung phone in my country isn’t made in china either, some of them made (assemble) in my country, and some of them made on vietnam. Iphones are more expensive in my country because it’s made in china, it’s possible to made goods without china.@batmanbud2 I hope you’re right buddy. It’s discouraging to me that over 51% of the population chose these mean spirited thugs to run things in this country. I know it affects me but I’d just rather not even watch the news these days where criminals are freed and made heroes. I hope at least that people will see this was a bad decision and can remember what made this a good country to begin with.I am deeply concerned the tarrifs are going to make getting my hands on Switch 2 a very expensive endeavor. My limit is about $400 for any game console. It is such a crazy, chaotic time to be an American. I would say more, but will restrain myself as to not risk having my comment deleted.Tariffs will make the sticker price the same in the U.S. as it is in Canada.That will be funny.@Vivianeat Crikey, an extra $100! And so much for games being $70 :/@Summer235 For some people it’s not just a hobby though, it’s a life style…MagaMagaMaga@MegaVel91 I know how it works. Capitalism is passing as much of the cost onto consumers as you think you can convince them to pay. Show CommentsLeave A CommentHold on there, you need to login to post a comment…Metroid Prime First 4 Figures ‘Samus Phazon Suit’ Sneak Peek, Pre-Orders Open SoonUpdate: Here’s a teaser of the light-up collector’s editionNintendo Is Discontinuing Gold Points, One Of The Switch’s Best IncentivesNoooo, don’t do it!Switch 2 Units Are Reportedly Selling For $40,000 On The Chinese Black MarketOr $50 trade-in at GameStopFunko Fusion Is Deemed A “Complete Commercial And Critical Failure”Around 20 unconfirmed layoffs reportedHideki Kamiya Wants Nintendo To Reboot Virtual Console For Switch 2Not a fan of Switch Online, huh? 0Random This Fan-Made Render Has Us Dreaming Of Switch 2’s Dual-Screen Potential 10News Not Even Squaresoft Could Convince Nintendo To Use Discs For The N64 4News Nintendo Power Artist “Hadn’t Actually Played Any Zelda Games” Before Creating His Take On Hyrule 14News Tetris Forever Is Getting Its Own Collectable Handheld Console 13News Nintendo Sets Up New Subsidiary In TaiwanNews Metroid Prime First 4 Figures ‘Samus Phazon Suit’ Sneak Peek, Pre-Orders…News Nintendo Is Discontinuing Gold Points, One Of The Switch’s Best IncentivesNews Sonic Racing: CrossWorlds Adds Characters From “SEGA Universes”News Toby Fox Shares Development Update On Deltarune Chapter 3 And 4Talking Point Why An LCD Screen Isn’t The End Of The World For Switch 2Guide Sonic Racing: CrossWorlds: Full Character Roster – Every Racer Confirmed…News Switch 2 Units Are Reportedly Selling For $40,000 On The Chinese Black M…News Funko Fusion Is Deemed A “Complete Commercial And Critical Failure&…News Hideki Kamiya Wants Nintendo To Reboot Virtual Console For Switch 2Guide 98 Games You Should Pick Up In Nintendo’s ‘Play On’ eShop Sale (Europe)Popular Right NowShow More Join 1,508,218 people following Nintendo Life:© 2025 Hookshot Media, partner of IGN Entertainment | Hosted by 44 Bytes | AdChoices | Do Not Sell My Personal Information
