ESA Warns: Trump Tariffs Could Impact More Than Just Switch 2

The past 48 hours have been a whirlwind for both economics enthusiasts and Nintendo fans alike. On Wednesday, it was revealed that the Nintendo Switch 2 would be priced at $450 in the U.S., a figure analysts attribute to anticipated tariffs, inflation, competitive pressures, and the cost of components. Then, late last night, the Trump Administration announced sweeping 10% tariffs on nearly all countries, with significantly higher tariffs targeted at nations like China, the EU, Japan, Vietnam, Canada, Mexico, and others. In response, China announced a 34% reciprocal tariff on all U.S. goods this morning. Amidst this turmoil, Nintendo decided to postpone pre-orders for the Nintendo Switch 2 in the U.S. to assess the impact of these tariffs on their console plans.

This unprecedented situation has left analysts, experts, and the public grappling with its implications. Just 30 minutes before Nintendo's announcement, I spoke with Aubrey Quinn, a spokesperson for the Entertainment Software Association (ESA), about the broader impact these tariffs could have on the gaming industry.

The ESA, like many others, is still navigating the potential outcomes of these developments. Quinn noted that while tariffs were anticipated due to previous actions by the Trump administration and campaign promises, the exact impact remains uncertain. The ESA expects retaliatory measures from countries like China and possible further U.S. tariffs. However, Quinn is clear that these tariffs will negatively affect the video game industry.

"We really are, at this point, just watching and trying not to have knee-jerk reactions, because we don't think that what President Trump announced this week is the end of the story, but what was announced this week and the tariffs as outlined, we do expect these tariffs will have a real and detrimental impact on the industry and the hundreds of millions of Americans who love to play games,” Quinn explained. The ESA aims to collaborate with the administration and other officials to find solutions that protect U.S. industries, businesses, and gamers.

The detrimental effects extend beyond just the pricing of gaming systems. Quinn emphasized that tariffs would likely influence consumer spending, company revenues, employment, research and development investments, and even the design of future consoles. "The entire consumer ecosystem is connected," she stated.

The ESA has been proactive, though facing challenges due to the newness of the Trump administration. Quinn highlighted efforts to establish connections with key decision-makers and to ensure they understand the industry's concerns. The ESA has already joined a coalition of trade associations to engage with U.S. trade representative Jamieson Greer and is seeking meetings with other legislators and administration members.

When asked about the effectiveness of these efforts, Quinn confirmed that conversations are occurring at various government levels, including with administration members and the Office of the United States Trade Representative (USTR). These discussions are part of a broader effort involving multiple associations, as the issue transcends the video game industry, affecting all consumer products.

For concerned consumers, Quinn suggested reaching out to their representatives through letters, calls, emails, or social media to express their concerns. "I think the more members of government, elected officials, and their staff who hear that their constituents are concerned, the more likely we are to be heard and to potentially make an impact," she advised.

Shortly after our conversation, Nintendo announced the postponement of Nintendo Switch 2 pre-orders due to the tariffs. While the ESA does not comment on individual company decisions, Quinn acknowledged the unfortunate timing of the Nintendo Switch 2 reveal coinciding with Trump's tariff announcement. She emphasized that the impact of these tariffs will be felt across the entire gaming industry, affecting not just consoles but also VR headsets, smartphones, and PC games.

"And even American-based companies, they're getting products that need to cross into American borders to make those consoles, to make those games. And so there's going to be a real impact regardless of company. This is company-agnostic, this is an entire industry. There's going to be an impact on the entire industry," Quinn concluded.