In a significant development for Nintendo, President Donald Trump’s recent announcement of a “90-day pause” on high tariffs for numerous countries could pave the way for the company to increase shipments of its highly anticipated Switch 2 from Vietnam to the United States. This strategic shift not only allows for more efficient logistics but also positions Nintendo favorably ahead of the console's expected launch on June 5th.
Previously, the Trump administration had imposed a steep 46 percent tariff on imports from Vietnam, where Nintendo manufactures a portion of its gaming hardware. This tariff restriction prompted Nintendo to postpone its initial preorder date for the Switch 2, which was set for April 9th in the US. With the new tariff pause, the current 10 percent tariff on products from countries that have not retaliated against Trump's tariffs will significantly benefit Nintendo as it looks to expedite shipments of the Switch 2.
Recent customs data reported by Bloomberg indicates that Nintendo has been proactively stockpiling Switch 2 units from Vietnam ahead of the launch. The company has confirmed that it has already shipped “some” inventory to the US, a move that could help meet the anticipated high demand for the console. According to Bloomberg, one of Nintendo’s main assemblers in Vietnam, Hosiden Corp., has dramatically increased its shipment volume to the US in recent months, shipping more devices in February than in the prior six months combined.
Data from NBD illustrates the surge in exports, showing that Vietnam exported 383,000 game console units to the US in January and over 725,000 units in February. This notable increase reflects the heightened production capabilities of Nintendo's Vietnamese assembly operations and their readiness to capitalize on the favorable tariff conditions.
While Nintendo has yet to announce a specific date for preorders in the US and Canada, or whether the Switch 2 will see a price increase due to tariffs, the current lower tariff rates suggest that Nintendo is likely to maximize its shipments to the US before any potential tariffs are reinstated. This strategic approach not only aims to fulfill the high consumer demand but also to mitigate any financial impact from future tariff changes.
With the 90-day tariff pause in effect, Nintendo stands at a crucial juncture to bolster its presence in the US market with the forthcoming Switch 2. The company’s proactive inventory management and increased shipments from Vietnam are indicative of its commitment to meeting consumer expectations and navigating the complexities of international trade.
