ESA on Trump Tariffs: 'More Than Just Switch 2, Must Be Taken Seriously'

The past 48 hours have been tumultuous for both economics enthusiasts and Nintendo fans alike. On Wednesday, the gaming world was hit with the news that the Nintendo Switch 2 would be priced at a steep $450 in the U.S. Analysts attribute this high cost to a combination of factors, including anticipated tariffs, inflation, competition, and rising component costs.

The situation escalated further when, last night, the Trump Administration announced sweeping 10% tariffs on nearly every country, with significantly higher tariffs targeted at nations such as China, the EU, Japan, Vietnam, Canada, Mexico, and others. In retaliation, China responded this morning with a 34% reciprocal tariff on all U.S. goods. Amidst this rapidly evolving scenario, Nintendo has decided to postpone pre-orders for the Nintendo Switch 2 in the U.S. as it assesses the impact of these tariffs on its plans.

This unprecedented situation has left everyone—from analysts and experts to the general public—scrambling to understand its ramifications. Just 30 minutes before Nintendo's announcement, I had a conversation with Aubrey Quinn, a spokesperson for the Entertainment Software Association (ESA), to discuss the broader impact of these tariffs on the gaming industry.

According to Quinn, the ESA is still trying to navigate the complex landscape created by these tariffs. While they anticipated some form of tariffs due to Trump's past actions and campaign rhetoric, the full scope and the retaliatory measures from countries like China were less predictable. The ESA expects that these tariffs will have a negative impact on 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 stated. The ESA aims to collaborate with the administration and elected officials to find solutions that protect U.S. industries, businesses, and gamers.

The impact of tariffs extends beyond just the pricing of systems. Quinn highlighted that consumer spending will be affected, which in turn impacts company revenue. Reduced profits could lead to job cuts, less investment in research and development, and even influence the design of future consoles. “The entire consumer ecosystem is connected,” she emphasized.

In response, the ESA is actively engaging with the new administration, which has only been in office for two months and is composed largely of new appointees. Quinn noted the challenge in leveraging previous relationships but affirmed their commitment to making connections and advocating for the industry. The ESA has already joined a coalition of trade associations to voice their concerns to U.S. trade representative Jamieson Greer and is seeking meetings with various legislators and administration members.

When asked if their efforts were being heard, Quinn confirmed that conversations are taking place at various levels of government, including with the White House and the office of the United States Trade Representative (USTR). She stressed that this issue transcends the video game industry, affecting all consumer products from food to fashion to electronics.

For concerned consumers, Quinn recommends 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.

Just minutes after our conversation ended, Nintendo announced the postponement of Nintendo Switch 2 pre-orders due to the tariffs. When asked for further comment, Quinn reiterated that the ESA does not comment on individual company actions but noted the unfortunate timing of the Switch 2 reveal with Trump's tariff announcement. She emphasized that the impact of tariffs is industry-wide, affecting not just consoles but also VR headsets, smartphones, and PC games. “This is going to have an impact on the entire industry,” she concluded.