Summary
- US import tariffs on China and Mexico could lead to higher console and physical game prices.
- Concerns exist about the Nintendo Switch 2’s release and potential price hikes due to the tariffs.
- Analysts are predicting that many games will no longer get physical releases as a result.
Import tariffs imposed by United States President Donald Trump via executive order continue to cause concern for budget-conscious video game players as his oft-reported trade war with China, Canada, and Mexico continues to ramp up. New or increased tariffs against the three countries went into effect on March 4, and multiple industry analysts have been showing concern about what they might mean for consoles like the Nintendo Switch 2 and physical video game discs.
US import tariffs on China in the amount of 10% started on February 4, with that number jumping up to 20 percent one month later on March 4. A new import tariff went into effect for Canada and Mexico on the same day in the amount of 25 percent. Essentially taxing companies for importing goods from these countries, the executive orders imposing the tariffs have already been met with retaliatory tariffs by China and Canada, with Mexico’s planned for announcement early next week. There has also been a big dip in the stock market as analysts express uncertainty regarding the future of international trade.
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As for the video games industry, the tariffs affecting China and Mexico are causing particular concern, as the majority of consoles coming into the United States are manufactured in the former, while physical game discs are generally imported from the latter. Daniel Ahmad, director of research and insights at Niko Partners, recently pointed out these figures via his Twitter account and has rejected Trump’s idea of moving console and disc production to within the United States’ borders, claiming that the costs of producing them domestically would cause them to shoot “through the roof.” That’s particularly concerning considering that year-over-year video game hardware sales were already down in January, with reports that sales of major brands’ consoles had dropped by about 45 percent collectively, according to Circana executive director Mat Piscatella.
Trump’s Tariffs Cause More Concern For Video Game Industry Experts
Of the three major console manufacturers, Nintendo is likely to be the first to see a major impact from the tariffs. Even prior to its announcement in January, there was concern that tariffs could hurt sales of the Switch 2 from industry insider Jeff Grubb and other sources. That console has no specific release date yet but is expected to be available sometime in 2025. A previous report from TheGamer indicated that the Switch 2 is being manufactured at Weltrend in China, and concerns continue to exist that its rumored price tag of $500 could shoot up greatly once import tariffs are applied.
Additionally, the tariffs against Mexico have prompted concern about the future of physical game sales, with worries that price hikes may be coming soon. An alternate theory suggests the elimination of many physical games altogether, as a recent post on Piscatella’s Bluesky account predicts that many games will no longer see physical releases, coming to PCs and consoles by digital download only as a cost-saving measure.
Nintendo Switch 2
- Brand
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Nintendo
- Original Release Date
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2025