Fans faced a bit of sticker shock today when Nintendo revealed the Switch 2 would cost $450, especially with some new physical games set to cost as much as $90. But the price of upgrading to the Mario maker’s next console generation is set to get even worse after President Donald Trump announced a new wave of shockingly high tariffs that could push the price of a Switch 2 in the U.S. to over $600.
The Trump administration revealed a new 10 percent across-the-board tariff for all foreign imports as well as a bevy of “reciprocal” tariffs aimed at individual countries the president claims are unfairly undercutting the U.S. when it comes to trade. Those include tariffs of 34 percent on China and up to 46 percent on Vietnam, where much of the manufacturing for the Switch 2 takes place. Cambodia, another country Nintendo sources from, would face a 49 percent tariff. The new tax hikes are set to go into effect on April 5.
Tariffs are taxes charged on products when they enter the country. Most companies choose to pass on much or all of the tax in the form of price hikes that then show up on the shelves at stores like Best Buy, Walmart, and Target. Many of the original Switch consoles were manufactured in China, but Nintendo began sourcing from countries like Vietnam and elsewhere after trade war threats during Trump’s first term, seemingly to avoid precisely this scenario.
“Switch production has been shifting to Vietnam and is around 50:50 versus China currently,” MST Financial analyst David Gibson told Kotaku last fall. “Expect more production to shift to Vietnam with Switch 2, but it takes 6 months (or more) to gear up. If the mix does not change then prices go up 35%+ for U.S. consumers.” He suggested one result is that more U.S. consumers could start trying to import consoles sold from Europe instead.
The Consumer Technology Association had previously estimated price increases of hundreds of dollars for video game consoles in the U.S., but the new tariffs being signed into law would lead to even more drastic hikes. “President Trump’s sweeping global and reciprocal tariffs are massive tax hikes on Americans that will drive inflation, kill jobs on Main Street, and may cause a recession for the U.S. economy,” Gary Shapiro, the group’s CEO, said in a press release today. “These tariffs will raise consumer prices and will force our trade partners to retaliate.”
As with everything Trump does, it’s hard to know if the latest tariff rollout will stick or is just another stunt aimed at exacting concessions for trade partners. It’s also possible that part of the Switch 2’s $450 price tag built in some extra room for Nintendo to eat potential tariff costs before passing them onto fans. The company was reportedly trying to ship as many Switch 2 consoles into the U.S. as possible earlier this year in an attempt to bypass the worst impacts of an escalating trade war. But that was seemingly less than a million units or so. The Switch 2 is forecast to sell 14.7 million units globally in its first year.
.
