Idas Antitrusting By Keyboard Member Mar 20, 2022 2,356 China-made Nintendo Switch 2 in line for 145% tariff hit, supplier warns Nintendo's Switch 2 and other gaming consoles made in China are likely to be hit by the trade war between the world's two biggest economies, despite the U.S. announcing over the weekend that smartphones, notebook computers and certain other tech products will be exempt from Donald Trump's "reciprocal" tariffs. According to an internal assessment memo by a major Apple and Nintendo supplier seen by Nikkei Asia, game consoles are still subject to a 145% U.S. tariff on goods made in China, which means products like Nintendo's highly anticipated new console are in line for a massive hit. The majority of Switch consoles are made in China, Nikkei Asia has learned, with a relatively small proportion made in Vietnam. Nintendo already delayed pre-orders for the Switch 2 in the U.S. as it gauged the impact of the "reciprocal" tariffs, Nikkei first reported. Many of Sony's PlayStation 5 consoles are made in China, as well. Click to expand... Click to shrink... Smart speakers, Bluetooth speakers and wireless earphones produced in China are also subject to U.S. tariffs of 145%, 152.5%, and even 170%, though production of many audio products has shifted to Southeast Asia, where they are currently subject to a 10% tariff for 90 days, according to the assembler's assessment. Most China-made TVs face a 156.4% tariff, according to the same assessment. The TV supply chain remains heavily rooted in China due to its cost-competitive local suppliers, though some TV assembly has moved to Mexico. Even smartphones and notebook computers made in China are still subject to a 20% basic tariff, while Chinese-made servers and electronic switches face a 45% tariff. Click to expand... Click to shrink... Tech suppliers' facilities in Vietnam, Thailand and India continued to run at full capacity even after the U.S. suddenly exempted smartphones and notebooks from the "reciprocal" tariffs, according to sources, who said it was better to prepare and ship as many products as possible right away given the extremely volatile environment. Nintendo declined to comment. Click to expand... Click to shrink... Right now, it seems that consoles are going to be hit hard by tariffs. But with things changing almost daily, who knows what may happen in a few weeks 🤷🏻‍♀️  Aleh Member Oct 27, 2017 19,572 145%? Every time I see the tariff it's grown bigger lol   Mauricio_Magus Member Oct 25, 2017 15,519 This will be a system that I'm going to get Day 1 because it might be the cheapest it will ever be.   Xando Member Oct 28, 2017 36,340 Nintendo's Switch 2 and other gaming consoles made in China are likely to be hit by the trade war between the world's two biggest economies, despite the U.S. announcing over the weekend that smartphones, notebook computers and certain other tech products will be exempt from Donald Trump's "reciprocal" tariffs. According to an internal assessment memo by a major Apple and Nintendo supplier seen by Nikkei Asia, game consoles are still subject to a 145% U.S. tariff on goods made in China, which means products like Nintendo's highly anticipated new console are in line for a massive hit. The majority of Switch consoles are made in China, Nikkei Asia has learned, with a relatively small proportion made in Vietnam. Nintendo already delayed pre-orders for the Switch 2 in the U.S. as it gauged the impact of the "reciprocal" tariffs, Nikkei first reported. Many of Sony's PlayStation 5 consoles are made in China, as well. Click to expand... Click to shrink... I shouldn't have believed era experts   Mikch85 Member May 12, 2018 4,487 Hey. 145% is basically an embargo. Switch 2 won't release in the US on these conditions, that I'm certain.   NotLiquid One Winged Slayer Member Oct 25, 2017 37,601 I think it was a safe assumption that China constituted a lot of Switch 2s going into the US when the coast was still clear, but that Vietnam and Cambodia's production facilities were the safety net, and that delaying the preorders are in part to change the supply line so it's all them for the foreseeable future. I wouldn't be surprised if that means Switch 2 runs into stock problems in the US though.   texhnolyze Shinra Employee Member Oct 25, 2017 25,826 Indonesia I thought people were so sure that Switch 2 is fine because it's mostly manufactured in Vietnam.   Glio Member Oct 27, 2017 27,371 Spain So, Nintendo's decision is between having chronic supply problems in the United States (Vietnam cannot produce all the Switch 2s that the market demands) or raising prices to a midpoint between 10% and 145%, mixing Vietnamese and Chinese Switch 2s.   ictoa Member Apr 16, 2022 177 Aleh said: 145%? Every time I see the tariff it's grown bigger lol Click to expand... Click to shrink... I fully expect to see it go to 200% by the end of the week.   Mark1 Member Oct 30, 2017 2,336 Hold on. I thought most of the Switch 2 units were made in Vietnam?   Xando Member Oct 28, 2017 36,340 Aleh said: 145%? Every time I see the tariff it's grown bigger lol Click to expand... Click to shrink... He raised it like 3 days in a row last week lol Mark1 said: Hold on. I thought most of the Switch 2 units were made in Vietnam? Click to expand... Click to shrink... Seems like this was mostly era experts talking out of their ass and the actual production capabilities in Vietnam are rather limited.   Glio Member Oct 27, 2017 27,371 Spain Mark1 said: Hold on. I thought most of the Switch 2 units were made in Vietnam? Click to expand... Click to shrink... No, I don't know where people got that from. It has always been a minority of production.   Kirby64 Member Aug 16, 2020 594 Glio said: So, Nintendo's decision is between having chronic supply problems in the United States (Vietnam cannot produce all the Switch 2s that the market demands) or raising prices to a midpoint between 10% and 145%, mixing Vietnamese and Chinese Switch 2s. Click to expand... Click to shrink... I fully expect every single Switch 2 made outside of China to be shipped to the US... however much that will help, anyways.   Glio Member Oct 27, 2017 27,371 Spain Kirby64 said: I fully expect every single Switch 2 made outside of China to be shipped to the US. Click to expand... Click to shrink... That's of course, but the entire Switch 2 production in Vietnam is not enough to meet US demand.   Ganondolf Member Jan 5, 2018 1,244 I'm sure Vietnam will be able to cover the stock. There has been a lot of stock sent to the US pre these tariffs from China, the switch 2 was always going to sell out at launch. There may bit a smaller amount of stock at launch but it will catch up. The whole reason that Nintendo set up the Vietnam factory was to cover them from tariffs issues from the US.   cw_sasuke Member Oct 27, 2017 29,616 Mauricio_Magus said: This will be a system that I'm going to get Day 1 because it might be the cheapest it will ever be. Click to expand... Click to shrink... Sad thing this is likely gonna be true. Especially if you factor in that the MK Wild Bundle is limited.   NotLiquid One Winged Slayer Member Oct 25, 2017 37,601 Mark1 said: Hold on. I thought most of the Switch 2 units were made in Vietnam? Click to expand... Click to shrink... Moving production to Vietnam and Cambodia was Nintendo's way of pre-empting the potential of China getting hit by tariffs, but until that point it was mostly still China since the process wasn't broken and they're just inherently built to produce a lot. We don't know how things are gonna look like now or whether production can suitably cover the loss of the units from China. Worst case scenario is that getting a Switch 2 in the US will be really difficult.   RailWays One Winged Slayer Avenger Oct 25, 2017 17,888 texhnolyze said: I thought people were so sure that Switch 2 is fine because it's mostly manufactured in Vietnam. Click to expand... Click to shrink... No, people were thinking Nintendo would opt to ship most of the Vietnam stock to U.S. to try and avoid having to raise prices drastically in the short term, however.   Meelow Uncle Works at Nintendo Member Oct 31, 2017 9,889 As others said, every Switch 2 units made outside of China will ship to the US while China will do the heavy lifting around the world   MayorSquirtle Member May 17, 2018 10,580 It's hard to say how much of a problem this is without knowing what "relatively small proportion" means. If countries besides China can cover a third of overall production that would suffice because that's roughly the US share of total Switch sales.   SpiritDusk Member May 5, 2024 869 This launch has been a disaster in every way possible for Nintendo. And yes, they are partly to blame. Poor communication, poor marketing, tone-deaf responses in interviews - Bowser's "Well luckily you can just stick with your Switch 1!". Announcing pre orders then delaying them.. a day later. I'm sure I'll get shouted down because era has an inability to blame anyone else but the guy in charge, however Nintendo have botched this massively as well.   Khanimus Avenger Oct 25, 2017 45,414 Greater Vancouver God, Canadian price is gonna get royally fucked because of the worthless dipshit US.   Xando Member Oct 28, 2017 36,340 MayorSquirtle said: It's hard to say how much of a problem this is without knowing what "relatively small proportion" means. If countries besides China can cover a third of overall production that would suffice because that's roughly the US share of total Switch sales. Click to expand... Click to shrink... A third of production is not a small portion   Meelow Uncle Works at Nintendo Member Oct 31, 2017 9,889 SpiritDusk said: This launch has been a disaster in every way possible for Nintendo. And yes, they are partly to blame. Poor communication, poor marketing, tone-deaf responses in interviews - Bowser's "Well luckily you can just stick with your Switch 1!". Announcing pre orders then delaying them.. a day later. I'm sure I'll get shouted down because era has an inability to blame anyone else but the guy in charge, however Nintendo have botched this massively as well. Click to expand... Click to shrink... . Are you always so negative? Like every thread lol.  MayorSquirtle Member May 17, 2018 10,580 Xando said: A third of production is not a small portion Click to expand... Click to shrink... That's kinda my point, they're saying "relatively small" in comparison to China making "the majority." A third IS "relatively" small to more than one half, but we have no idea what the actual proportion is. With the wording used this could either mean a disastrous situation or a mostly okay one.   Renna Hazel Member Oct 27, 2017 12,917 SpiritDusk said: Announcing pre orders then delaying them.. a day later. Click to expand... Click to shrink... This may or may not be bad for Nintendo (I'd argue not) but I'm so glad they did it this way so everyone knows exactly why pre-orders are delayed. Any prices increase from what they announced will also be obvious and I can only hope people blame the correct party for said increase.   wrowa Member Oct 25, 2017 4,701 SpiritDusk said: This launch has been a disaster in every way possible for Nintendo. And yes, they are partly to blame. Poor communication, poor marketing, tone-deaf responses in interviews - Bowser's "Well luckily you can just stick with your Switch 1!". Announcing pre orders then delaying them.. a day later. I'm sure I'll get shouted down because era has an inability to blame anyone else but the guy in charge, however Nintendo have botched this massively as well. Click to expand... Click to shrink... If you get shouted down it's because you are in a thread about the consequences of Trump's tarrifs, so all these other points aren't exactly on topic here.   TheEchosOfTheCyborg Member Feb 24, 2018 7,292 Khanimus said: God, Canadian price is gonna get royally fucked because of the worthless dipshit US. Click to expand... Click to shrink... Was thinking this, is their really no way for Nintendo to send stock to Canada directly (though I guess the issue then is where do you put it all) Plus with Sony's recent action, I have dreading feeling Nintendo is also going to fuck over the rest of the world so they don't have to raise the prices too much in the US because of course (which feels like slowly killing worldwide customer goodwill). It honestly does feel like we're seeing the traditional console market dying.  Khanimus Avenger Oct 25, 2017 45,414 Greater Vancouver TheEchosOfTheCyborg said: Was thinking this, is their really no way for Nintendo to send stock to Canada directly (though I guess the issue then is where do you put it all) Plus with Sony's recent action, I have dreading feeling Nintendo is also going to fuck over the rest of the world so they don't have to raise the prices too much in the US because of course (which feels like slowly killing worldwide customer goodwill). It honestly does feel like we're seeing the traditional console market dying. Click to expand... Click to shrink... $800 CDN for a base Switch 2 incoming.   Lotus One Winged Slayer Member Oct 25, 2017 122,450 Meelow said: . Are you always so negative? Like every thread lol. Click to expand... Click to shrink... It became his shtick out of nowhere one day, it's beyond exhausting, and not even the right thread for it  Red Kong XIX Member Oct 11, 2020 12,850 Meelow said: As others said, every Switch 2 units made outside of China will ship to the US while China will do the heavy lifting around the world Click to expand... Click to shrink... The question is, are the production capabilities in Vietnam big enough to supply the entire US market for the next 4 years.   Rinku_ Member May 4, 2023 1,978 SpiritDusk said: This launch has been a disaster in every way possible for Nintendo. And yes, they are partly to blame. Poor communication, poor marketing, tone-deaf responses in interviews - Bowser's "Well luckily you can just stick with your Switch 1!". Announcing pre orders then delaying them.. a day later. I'm sure I'll get shouted down because era has an inability to blame anyone else but the guy in charge, however Nintendo have botched this massively as well. Click to expand... Click to shrink... "The guy in charge". He's not fucking Voldemort lol, weird to minimise Trump in this way.  SpiritDusk Member May 5, 2024 869 Meelow said: . Are you always so negative? Like every thread lol. Click to expand... Click to shrink... Nice personal attack. I'm sharing my opinion. I know you're not keen on people criticising Nintendo but I'm just sharing my thoughts, on a public forum.  tapedeck Member Oct 28, 2017 8,274 Yeesh, if these tariffs actually hold being able to grab a Switch 2 at launch for $449 is gonna feel like winning the fucking lottery..if it didn't already.   Glio Member Oct 27, 2017 27,371 Spain Blaming Nintendo for China's 145% tariffs is a level of console warring and trolling I didn't expect to find on Era. Well, who am I kidding? I'm not that surprised.  Mark1 Member Oct 30, 2017 2,336 NotLiquid said: Moving production to Vietnam and Cambodia was Nintendo's way of pre-empting the potential of China getting hit by tariffs, but until that point it was mostly still China since the process wasn't broken and they're just inherently built to produce a lot. We don't know how things are gonna look like now or whether production can suitably cover the loss of the units from China. Worst case scenario is that getting a Switch 2 in the US will be really difficult. Click to expand... Click to shrink... Meelow said: As others said, every Switch 2 units made outside of China will ship to the US while China will do the heavy lifting around the world Click to expand... Click to shrink... This makes sense. China for areas not affected by the trade war. But Vietnam for US and Canada Get your pre-orders in when they become available.  Mpl90 Member Oct 25, 2017 3,232 MayorSquirtle said: It's hard to say how much of a problem this is without knowing what "relatively small proportion" means. If countries besides China can cover a third of overall production that would suffice because that's roughly the US share of total Switch sales. Click to expand... Click to shrink... On that note, this is probably a good time to remind that we have a clearer idea on the capacity of the Vietnam plant dedicated to the manufacturing of Switch 2: in fact, we know that back in January, 383.000 Switch 2 units (completely packaged) have left Vietnam with the US as their sole destination. It is also highly possible that further increases of monthly exports as the launch was approaching were already in the cards, we'll have to see how much they're able to scale operations up even further in order to accumulate stock in transit before the potential end of the 90-days pause.  SpiritDusk Member May 5, 2024 869 Glio said: Blaming Nintendo for China's 145% tariffs is a level of console warring and trolling I didn't expect to find on Era. Well, who am I kidding? I'm not that surprised. Click to expand... Click to shrink... Yes I'm such a console war troll, considering I travelled to London because I was excited to try out the Switch 2. 🙄  --R Being sued right now, please help me find a lawyer Member Oct 25, 2017 15,251 Meelow said: . Are you always so negative? Like every thread lol. Click to expand... Click to shrink... I guess he ran out of /r/gamingleaksandrumors threads to post? Makes no sense to post all of that on something that is tariff-exclusive lol.   misery mired Member Apr 2, 2022 1,216 can't nintendo just ship the china-made switch 2's to their vietnam/cambodia plants and then to the u.s.? or would that not work?   Nintenleo Member Nov 9, 2017 5,052 Italy Nintendo won't release a $1000 console, even if the consoles already in the US won't be hit by the tariffs. They can't market a product at $450 at launch and then push it to $800+ some months later. If they can't make some sort of deal or eat a huge loss (impossible), they probably have to delay the console in the North American market.   SpiritDusk Member May 5, 2024 869 --R said: I guess he ran out of /r/gamingleaksandrumors threads to post? Makes no sense to post all of that on something that is tariff-exclusive lol. Click to expand... Click to shrink... Embarrassing. Grow up.  Renna Hazel Member Oct 27, 2017 12,917 SpiritDusk said: Yes I'm such a console war troll, considering I travelled to London because I was excited to try out the Switch 2. 🙄 Click to expand... Click to shrink... I don't know about console war troll, but you did come into a topic about tariffs to let us know we shouldn't place the blame solely on Trump. Not really sure we need a Trump defense force right now.   Glio Member Oct 27, 2017 27,371 Spain misery mired said: can't nintendo just ship the china-made switch 2's to their vietnam/cambodia plants and then to the u.s.? or would that not work? Click to expand... Click to shrink... It would be as legal as manufacturing something in China, shipping it to Italy, putting a "Made in Italy" sticker on it, and then shipping it to the United States.   Meelow Uncle Works at Nintendo Member Oct 31, 2017 9,889 SpiritDusk said: Nice personal attack. I'm sharing my opinion. I know you're not keen on people criticising Nintendo but I'm just sharing my thoughts, on a public forum. Click to expand... Click to shrink... Lol okay. I'm not attacking you, I'm just stating something obvious, I've seen you be negative in so many threads and you literally brought in a post that has nothing to do with this thread. Yes, you're right. I can't stand when people attack my love Nintendo, it hurts my soul so much, everytime I post a positive Nintendo comment Furikawa himself will send me a $100. It's true! You'll read it next week on gaming magazines.