Nintendo moved much of its hardware production to Vietnam to lessen the impact of U.S. tariffs on China. Unfortunately, President Trump's latest round of tariffs includes a 46% percent charge on imports from Vietnam. Gamers who are disappointed by the Switch 2 price are already fearing future price hikes.
The Japanese manufacturer began shifting factories to Vietnam in 2019 in response to prior Trump tariffs targeting China. Estimates show that Nintendo relies on the Southeast Asian country to produce nearly 50% of its hardware. Included in these goods are the Switch and Switch 2 consoles. Countering an escalating trade war, Nintendo shipped a large volume of its latest gaming system to the U.S. as early as January.
Nintendo still relies on China for some manufacturing, so its strategy has limitations. Nevertheless, gamers are left to wonder if the company had anticipated the latest Trump tariffs on Vietnam. Some Switch 2 leaks indicated that the console would cost $400. As it turns out, the $450 handheld is pricier than expected. Adding to upgrade expenses, Mario Kart World is causing shock with its $80 price tag. Alternatively, buyers can purchase a Switch 2 bundle with the game for $499.99.
If Nintendo had already taken future tariffs into account, gamers might see the Switch 2 price remain stable. Also, Nintendo is unlikely to make changes before the console debuts on June 5th. Still, it may only be a matter of time before consumers feel the implications of import costs.
Cambodia seems like an obvious alternative to make Nintendo's consoles. In fact, the company already has a presence in the country. Unfortunately, Cambodia was also just hit with enormous 49% tariffs. In 2019, consoles eventually were exempt from China tariffs, but it's unclear if gamers can expect another reprieve.