ESA Slams Trump Tariffs: 'Not Just About Switch 2'

The past 48 hours have been a whirlwind for both economics enthusiasts and Nintendo fans. On Wednesday, it was revealed that the Nintendo Switch 2 would retail for $450 in the United States, a steep price attributed by analysts to anticipated tariffs, alongside factors like inflation, competition, and rising component costs.

However, the landscape shifted dramatically last night when the Trump Administration unveiled sweeping 10% tariffs on nearly all countries, with significantly higher tariffs imposed on nations such as China, the EU, Japan, Vietnam, Canada, Mexico, and others. In a swift response, China retaliated this morning with a 34% reciprocal tariff on all U.S. goods. Amid this escalating trade tension, Nintendo announced just hours ago that it would be postponing pre-orders for the Nintendo Switch 2 in the U.S. to reassess the impact of these tariffs on its console strategy.

This unprecedented scenario has left analysts, experts, and the public grappling to understand its full implications. Merely 30 minutes before Nintendo's surprising pre-order news, I had the opportunity to discuss the broader effects of these tariffs on the gaming industry with Aubrey Quinn, a spokesperson for the Entertainment Software Association (ESA).

The ESA, like everyone else, is still navigating the potential ramifications of these tariffs. Quinn noted that while they anticipated some form of tariffs due to previous actions and campaign promises by Trump, the exact nature and extent of the retaliation from countries like China, and the potential for further U.S. tariffs, remain uncertain.

However, the ESA is clear about one thing: these tariffs will adversely 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," Quinn stated. "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. Our goal is to work with the administration and other elected officials to try to find a solution that doesn't damage U.S. industries, businesses, but also American gamers and families."

Quinn elaborated that the impact would go beyond just higher console prices. "It’s hard to imagine a world where tariffs like these don’t impact pricing," she said, pointing out that consumer spending would also be affected, which in turn would influence company revenue, employment, research and development, and even the design of future consoles. "The entire consumer ecosystem is connected," she emphasized.

In response to these developments, the ESA is actively engaging with government officials, though it's been challenging to get started due to the newness of the Trump Administration's team. "We know who the conversations need to be happening with, and we are working on making connections and ensuring they understand our eagerness to collaborate on solutions," Quinn said, highlighting the importance of public-private sector dialogue.

The ESA has already joined a coalition of trade associations to voice concerns to U.S. Trade Representative Jamieson Greer and is seeking meetings with legislators and administration members to discuss these issues. When asked if their efforts were being heard, Quinn confirmed that conversations were taking place at various levels of government, though not yet with President Trump himself. She stressed that the issue extends beyond video games, impacting all consumer products from food to fashion to electronics.

For concerned consumers, Quinn recommended reaching out to their representatives through letters, calls, emails, or tweets to express their concerns. "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 its decision to halt Nintendo Switch 2 pre-orders due to the tariffs. While the ESA does not comment on individual company actions, Quinn reflected on the broader impact of the tariffs, noting the unfortunate timing of the Switch 2 reveal with Trump's tariff announcement. "There are so many devices we play video games on... This is going to have an impact," she said, underscoring that the issue is industry-wide and affects all companies, regardless of their origin.