US President Donald Trump’s recent tariffs announcement sent shockwaves through global markets, affecting not only basic necessities but also luxury items like the highly anticipated Nintendo Switch 2.
The Switch 2 was initially set to be released in early May with a price tag of $450 or $500 for a bundle. However, Nintendo scrapped its preorder plans on Friday due to concerns over tariffs and evolving market conditions.
Experts believe that Trump’s tariffs will lead to higher prices across the board, affecting not just electronics but also everyday goods. Shihoko Goto, a senior fellow at the Mansfield Foundation, warned that this is “just one example of one product from one company being hit by tariffs, and we’re going to see price increases all across the board.”
Nintendo had taken steps in 2019 to avoid US tariffs by shifting some production from China to Vietnam. However, Trump’s new plan targets countries with high trade surpluses, including Vietnam.
Vietnam is hit with 46 percent tariffs on imported goods, one of the highest rates announced by the White House. Experts argue that this will lead to higher costs for companies and consumers alike.
“We’re going to see a lot of belt tightening on optional consumer goods, especially on consumer electronics,” Goto said.
While some predicted that Trump’s tariffs would lead to companies relocating their production to the US, experts believe it unlikely due to high labor costs in the country. Labor costs in the US are estimated to be 15 times higher than those in Vietnam.
As a result, the cost of goods like the Switch 2 becomes unaffordable for consumers, who were already struggling with post-pandemic price increases. Goto explained that Americans want “high-quality, low-cost goods” and that it’s difficult to achieve this in the US due to high labor costs.
The delay in the Switch 2 release highlights the far-reaching impact of Trump’s tariffs on the global economy. As companies adapt to the new trade landscape, consumers can expect higher prices for various goods and services.
Source: https://www.vox.com/culture/407365/nintendo-switch-2-delay-preorder-tariff-trump-how-to