Nintendo’s Switch 2 Survives Tariff Turmoil and Launches Just in Time
Hey everyone, let’s talk about something that almost didn’t happen the way fans had hoped – the release of the Nintendo Switch 2. Now, unless you’ve been totally unplugged, you probably know the Switch 2 officially launched on June 5, and fans lined up across the globe to get their hands on it. But what a lot of people don’t realize is just how close we came to either paying a lot more or waiting a lot longer for this release.
So, what happened? Well, it all comes down to trade tariffs. Yeah, not the most exciting topic on the surface, but hang in – it gets intense. Earlier this year, former President Donald Trump made headlines again with his push to reintroduce aggressive tariffs, targeting imports from countries like Japan and Vietnam. If you didn’t know, Nintendo is based in Japan and does a lot of its manufacturing in Vietnam. You can see the issue here.
Back in April, just hours after Nintendo revealed the Switch 2 and set its U.S. launch price at $450, Trump got on stage and announced tariffs as high as 46% on Vietnamese imports and 24% on Japanese goods. That sent shockwaves through the tech industry. Stock markets dipped, gamers panicked, and Nintendo hit pause on U.S. pre-orders to reassess their plans.
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Now here’s where the timing worked out like a miracle: Trump’s administration announced a 90-day pause on those tariffs – likely to buy time for negotiations. That pause perfectly covered the June 5 launch window. So, instead of delay or price hikes, Nintendo managed to sneak the Switch 2 launch right through that gap. If it weren’t for that temporary reprieve, the console could’ve easily cost $500 or more, or worse, been postponed.
Even though the base console price remained intact, some accessories didn’t escape the hike. Things like the dock now cost $10 more, and controller straps are up by $1. Not a massive hit, but it’s clear Nintendo is bracing for the possibility of more changes depending on how trade talks evolve.
Experts say Nintendo was actually quite smart in the way it handled this. They had already shifted much of their production out of China back in 2019 to avoid earlier tariffs. But moving to Vietnam turned out to be a gamble too when the unexpected tariffs on that country were announced. As Robert Johnson, an international economist, put it: the industry was caught totally off guard.
What saved Nintendo? Some are cheekily calling it the “taco effect” – short for “Trump Always Chickens Out.” Essentially, the administration backed off just enough to let the Switch 2 through. But if those tariffs go into effect later this year, we might see prices climb by the holiday season.
One last point worth noting: even with all these logistics and financial gymnastics, Nintendo’s real revenue comes from games and subscriptions, not just the console itself. So, while they’ll fight to keep hardware costs competitive, they’re banking on us diving into the digital world of titles and add-ons once we’re in.
Bottom line: the Switch 2 made it out alive – barely. It was a wild ride of international policy, production strategies, and corporate timing. And if you’ve got one already, consider yourself lucky. Because in another timeline, we might still be waiting... or paying a lot more.
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