Can't Nintendo just manufacture Switch 2 units in the United States to avoid paying tariffs? That's what some people are wondering in the wake of the tariff situation that's dominated headlines in recent days.
If Nintendo even wanted to do this, it would take "years" to get such an operation up and running, New York University Stern School of Business economics professor Joseph Foudy said in an interview.
"Nintendo would have to set up a final assembly factory in the US, which means finding land, building a facility, and recruiting a workforce," Foudy told Polygon.
Even if Nintendo established manufacturing plants in the USA, that wouldn't be the end of the matter, as the Switch 2's custom parts are produced internationally and would face tariffs when entering the country. Nintendo would also need to employe people for a factory, of course, and this could prove costly as well given labor rates in the US vs. abroad.
A week after they were announced on April 2, Trump recently lowered tariffs in Vietnam and Cambodia to 10%, though he increased tariff rates to 145% in China, and both are effective immediately. According to Bloomberg, about one-third of Switch 2 units are assembled in Vietnam with the rest coming from places like Cambodia and China.
Trump said he is initiating a 90-day pause to new tariff deals, which would cover the period from now through early July. The Switch 2 launches on June 5.
Nintendo of America president Doug Bowser recently said Nintendo had already shipped some Switch 2 units to America and they are now in warehouses awaiting delivery.
Switch 2 preorders in the US were expected to begin on April 9, but Nintendo delayed preorders due to the tariff situation. Now that things are somewhat settled in that respect, everyone is waiting for Nintendo to announce a new preorder date.
Adjusted for inflation, the Switch 2 is about $50 more expensive than the original Switch, which launched in March 2017 for $300 USD. Explaining the price increase, Nintendo's Bill Trinen said everything in life gets more expensive with time, and new Nintendo consoles are no different. Others believe Nintendo is raising prices simply because it can, knowing people will pay it.
Despite the Switch 2 costing more, Nintendo will reportedly lose money on every system it sells--this is typical for most consoles during their early days.
Source
If Nintendo even wanted to do this, it would take "years" to get such an operation up and running, New York University Stern School of Business economics professor Joseph Foudy said in an interview.
"Nintendo would have to set up a final assembly factory in the US, which means finding land, building a facility, and recruiting a workforce," Foudy told Polygon.
Even if Nintendo established manufacturing plants in the USA, that wouldn't be the end of the matter, as the Switch 2's custom parts are produced internationally and would face tariffs when entering the country. Nintendo would also need to employe people for a factory, of course, and this could prove costly as well given labor rates in the US vs. abroad.
A week after they were announced on April 2, Trump recently lowered tariffs in Vietnam and Cambodia to 10%, though he increased tariff rates to 145% in China, and both are effective immediately. According to Bloomberg, about one-third of Switch 2 units are assembled in Vietnam with the rest coming from places like Cambodia and China.
Trump said he is initiating a 90-day pause to new tariff deals, which would cover the period from now through early July. The Switch 2 launches on June 5.
Nintendo of America president Doug Bowser recently said Nintendo had already shipped some Switch 2 units to America and they are now in warehouses awaiting delivery.
Switch 2 preorders in the US were expected to begin on April 9, but Nintendo delayed preorders due to the tariff situation. Now that things are somewhat settled in that respect, everyone is waiting for Nintendo to announce a new preorder date.
Adjusted for inflation, the Switch 2 is about $50 more expensive than the original Switch, which launched in March 2017 for $300 USD. Explaining the price increase, Nintendo's Bill Trinen said everything in life gets more expensive with time, and new Nintendo consoles are no different. Others believe Nintendo is raising prices simply because it can, knowing people will pay it.
Despite the Switch 2 costing more, Nintendo will reportedly lose money on every system it sells--this is typical for most consoles during their early days.
Source