ESA Urges Serious Consideration of Trump Tariffs Beyond Just Switch 2

The past 48 hours have been a whirlwind for those keeping up with economic news, and even more so for Nintendo enthusiasts. On Wednesday, it was revealed that the Nintendo Switch 2 would be priced at $450 in the United States, a steep cost that analysts attribute to factors like anticipated tariffs, inflation, competition, and rising component costs.

Adding to the chaos, the Trump Administration unveiled sweeping 10% tariffs on imports from nearly every country last night, with significantly higher tariffs imposed on nations such as China, the EU, Japan, Vietnam, Canada, Mexico, and many others. In a swift response, China announced a 34% reciprocal tariff on all U.S. goods this morning. In the midst of this tariff turmoil, Nintendo declared a postponement of Nintendo Switch 2 pre-orders in the U.S. to assess the impact of these tariffs on their console strategy.

This situation is unprecedented and is causing widespread confusion and concern among analysts, experts, and the public alike. Just 30 minutes before Nintendo's announcement, I had the opportunity to speak with Aubrey Quinn, a spokesperson for the Entertainment Software Association (ESA), about the broader implications of these tariffs on the gaming industry.

The ESA is still navigating the uncertainties these tariffs bring. Quinn mentioned that while they anticipated some form of tariffs due to Trump's previous policies and campaign promises, the scale and scope of the recent announcements were unexpected. They are bracing for potential retaliatory measures from countries like China and further U.S. tariffs. However, the full ramifications remain unclear.

Despite the uncertainty, the ESA is clear on one thing: these tariffs will negatively impact the video game industry. Quinn stated, “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.” The ESA aims to collaborate with the administration and elected officials to find solutions that protect both U.S. businesses and gamers.

Quinn highlighted that the detrimental effects extend beyond just higher console prices. “It’s hard to imagine a world where tariffs like these don’t impact pricing,” she said. She also noted that consumer spending would likely decrease, affecting company revenue, job security, investment in research and development, and even the future of console technology. “The entire consumer ecosystem is connected,” she emphasized.

The ESA is actively working to address the issue, though it has been challenging to get started given the newness of the Trump Administration. Quinn said, “The short answer is we know who the conversations need to be happening with, and we are working on making connections and making sure that they understand that we are eager to work with them to find solutions that this is about public, private sector conversations happening, so we can understand and make sure that they see the impact and the risk of impact to business, to consumers, and really everything that's happening within the US borders.”

The ESA has already joined forces with other trade associations to express their concerns to U.S. Trade Representative Jamieson Greer and is seeking meetings with various legislators and administration members. When asked if these efforts are making an impact, Quinn responded, “Yes. I can tell you conversations are happening with... I don't want to say every level... I've not met with Trump, right? So I don't want to say every level of government, but certainly we've met with members of the administration. We've met with employees at the White House, we've met with employees at USTR [the office of the United States Trade Representative], so yes, we are having conversations and we're also doing that in partnership with other associations to make sure that... This isn't a video game issue. I represent the video game industry, so I'm very aware of the impact on the video game industry, the potential impact, but it's not a video game industry. This is going to affect all consumer products from food to fashion to electronics.”

For concerned consumers, Quinn suggests reaching out to elected representatives through letters, calls, emails, or social media to voice 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.”

Shortly after our conversation, Nintendo announced the delay of Nintendo Switch 2 pre-orders due to the tariffs. When asked for comment, Quinn noted that the ESA does not comment on individual company decisions. However, she did address the high pricing of the Nintendo Switch 2, saying, “You know what? It's been interesting with media coverage around video games and tariffs because just unfortunate coincidental timing that the Switch [2 reveal] was the same day as President Trump's announcement. There are so many devices we play video games on. There are other consoles, but as I was saying, VR headsets, our smartphones, people who love PC games, if we think it's just the Switch, then we aren't taking it seriously. This is going to have an impact. 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.”