No stupid questions: If Nintendo wanted to avoid strong tariffs that President Donald Trump imposed, how quickly could it move production 2 to the USA? Trump did one partly walkback Already on the tariffs, but let us become hypothetical here.
The short answer is that it would take a lot more time than you would think, and the long answer is the same reason why every big hardware manufacturer that is strongly based on factories outside the USA Alternative solutions.
“Such a step would take years,” Joseph Foudy, Professor of New York University Stern School of Business Economics, told Polygon. “Nintendo would have to set up a factory from the final assembly in the USA, which means to find land, build a facility and recruit a workforce.”
After Finance timesNintendo currently produces more than half of his hardware in Vietnam and Cambodia, and the rest is in China. A move to the USA to assemble Switch 2S should be imported all custom parts anyway and pay the tariffs. In addition, Nintendo would have to spend the higher labor costs in the United States if Apple would do so that the costs for the production of an iPhone could almost double Analysts of the Bank of America. The only way for Nintendo to completely avoid tariffs would be to set up even more factories in the USA to create every part of the switch 2 and extend the timeline even further.
“This is how Apple is exposed to China due to its dependency The first Trump management. And it took years for a fraction of its production to places such as Vietnam and India, ”said Foudy.
This was also the time when Nintendo moved part of his Switch production away from China and to Vietnam and Cambodia. This six -year decision could be the only option of how Nintendo can overthrow the graduation on the page 125% tariff for Chinese imports That came into force on Wednesday. A further centralization of Switch 2 production in these countries could minimize the effects. Trump dropped every tariff With the exception of China, which has dropped to 10% for the next 90 days on Wednesday, but if nothing changes, both countries could resume Some of the highest costs When they are set again.
“The best hope is that these other locations are at least one partial trade agreement with the administration or that the industry as a whole will receive a liberation. However, it is impossible to guess both,” said Foudy.
None of this is good news for those of us who were combined with the price of 450 US dollars on the Switch 2. Nintendo of America President Doug Bowser said the The tariffs did not take into account the priceBut the CEO of the research company DFC Intelligence suspects that this is the case and predicts that there will be no price increase if pre -orders go live at some point. If he runs wrong or Trump reverses his decision on the 90-day break, the Switch 2 price could be 600 US dollars. Analysts told Reuters Last week, iPhones could cost 30% to 40% more if Apple would forward the costs to consumers.
How quickly could Nintendo Switch Switch 2 production in the USA? So long that it won't do it, at least not before the handheld starts in June. Nobody, not even Nintendo, can escape Trump's tariffs.
“Like many manufacturers, Nintendo is a ship in a storm that tries not to be hit so well by a large wave, but has little control over its fate,” said Foudy.
