Apr 08, 2025 12:03:00

Nintendo, which has manufacturing bases in China and Vietnam, is hit hard by the introduction of Trump tariffs, with its stock price plummeting by nearly 10%

On April 2, 2025, US President Donald Trump announced that he would impose a 10% tariff on all imports from around the world, and then

impose 'reciprocal tariffs' that would add different tax rates for each country and region. As a result, the stock price of Nintendo, which sells the Nintendo Switch 2, whose release date and details were just announced, has also fallen significantly.

Nintendo and Sony Shares Fall in Tariff-Induced Wipeout for Japan Stocks - Bloomberg
https://www.bloomberg.com/news/articles/2025-04-07/nintendo-plummets-10-in-tariff-induced-wipeout-for-japan-stocks

Trump's Tariffs Cause Stocks in Japanese Video Game Companies to Collapse | Push Square
https://www.pushsquare.com/news/2025/04/trumps-tariffs-cause-stocks-in-japanese-video-game-companies-to-collapse

Mario enters trade wars as Nintendo readies Switch 2 launch

https://www.ft.com/content/a781c853-3fed-4dfc-b940-4137546180de

Today was a horrendous day for Japanese gaming companies on the stock market - - Gamereactor
https://www.gamereactor.eu/today-was-a-horrendous-day-for-japanese-gaming-companies-on-the-stock-market-1525663/

Since the first Trump administration in 2017-2021 announced that it would 'transform the global trade system,' Nintendo has been moving some of its production bases from China to other countries, and according to Robin Zhu, an analyst at research firm Bernstein, more than half of Nintendo's hardware for the U.S. was manufactured in Vietnam and Cambodia at the time of writing. 'Increasing assembly capacity from new bases in Southeast Asia could be important to the company's efforts to ensure sufficient inventory for the 2025 holiday season and ultimately the success of the Nintendo Switch 2,' Zhu said.

However, President Trump imposed extremely high tariffs on China, Vietnam, and Cambodia, at 34%, 46%, and 49%, respectively. This will inevitably deal a major blow to Nintendo. In fact, on the Tokyo Stock Exchange Prime Market, Nintendo's stock price fell by more than 10% from April 4 to April 7, 2024.

President Trump

told reporters that 'I am not considering temporarily suspending the tariffs,' and in response to China's announcement that it would 'impose the same additional 34% tariffs on all imports from the United States' in retaliation for the U.S.'s reciprocal tariffs, he stated that 'if China does not withdraw its tariff increases, the United States will impose additional tariffs of 50% on China starting April 9.'

On the other hand, in order to respond to these high tariffs, it has been reported that Nintendo has been shipping completed Nintendo Switch 2 units from Vietnam to facilities in the United States since January 2025. MST Financial analyst David Gibson said, 'Nintendo shipped a total of 383,000 Nintendo Switch 2 units completed in January from Vietnam over a five-day period, all of which were sent to the United States. This was likely done to test the distribution system as well as to avoid the risk of tariffs in advance. Shipments will increase significantly from February to March.'

Pre-orders for the Nintendo Switch 2 in the United States were originally scheduled to begin on April 9, 2025, but Nintendo has announced that it will postpone the start date and time of pre-orders in response to the implementation of the reciprocal tariffs.

Nintendo postpones pre-orders for Nintendo Switch 2 due to Trump administration's tariff hike - GIGAZINE

Nintendo is not the only one that has been hit hard by the introduction of the mutual tariffs. The stock prices of companies such as Koei Tecmo Holdings , Bandai Namco Holdings , Sega Sammy Holdings , Capcom , Square Enix Holdings , and Konami Group have all plummeted. In particular, the stock price of the Sony Group , which produces PlayStation, fell by about 10% from April 4 to April 7, 2025.