Nikkei: China-made Nintendo Switch 2 in line for 145% tariff hit, supplier warns

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China-made Nintendo Switch 2 in line for 145% tariff hit, supplier warns

U.S. exempts smartphones, laptops but not game consoles and smart speakers
asia.nikkei.com asia.nikkei.com
Nintendo's Switch 2 and other gaming consoles made in China are likely to be hit by the trade war between the world's two biggest economies, despite the U.S. announcing over the weekend that smartphones, notebook computers and certain other tech products will be exempt from Donald Trump's "reciprocal" tariffs.

According to an internal assessment memo by a major Apple and Nintendo supplier seen by Nikkei Asia, game consoles are still subject to a 145% U.S. tariff on goods made in China, which means products like Nintendo's highly anticipated new console are in line for a massive hit.

The majority of Switch consoles are made in China, Nikkei Asia has learned, with a relatively small proportion made in Vietnam. Nintendo already delayed pre-orders for the Switch 2 in the U.S. as it gauged the impact of the "reciprocal" tariffs, Nikkei first reported. Many of Sony's PlayStation 5 consoles are made in China, as well.
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Smart speakers, Bluetooth speakers and wireless earphones produced in China are also subject to U.S. tariffs of 145%, 152.5%, and even 170%, though production of many audio products has shifted to Southeast Asia, where they are currently subject to a 10% tariff for 90 days, according to the assembler's assessment. Most China-made TVs face a 156.4% tariff, according to the same assessment. The TV supply chain remains heavily rooted in China due to its cost-competitive local suppliers, though some TV assembly has moved to Mexico.

Even smartphones and notebook computers made in China are still subject to a 20% basic tariff, while Chinese-made servers and electronic switches face a 45% tariff.
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Tech suppliers' facilities in Vietnam, Thailand and India continued to run at full capacity even after the U.S. suddenly exempted smartphones and notebooks from the "reciprocal" tariffs, according to sources, who said it was better to prepare and ship as many products as possible right away given the extremely volatile environment.

Nintendo declined to comment.
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Radical_3d said:
This is all old news. Electronic components are exempt from tariffs in the US (as for the second I'm writing this, maybe when Big Cheeto wakes up things change).
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This article already acknowledges that. Not all electronic components are excluded and it's only temporary anyway.
 
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Radical_3d said:
This is all old news. Electronic components are exempt from tariffs in the US (as for the second I'm writing this, maybe when Big Cheeto wakes up things change).
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No, Video Game Consoles are not exempt. The HTS code for Video Game Consoles is 9504.50 https://www.dripcapital.com/hts-code/95/04/50

These are the HTS Codes that have exemptions, Video Game Consoles are not among them.

GoVj-S5XUAAnu1d


The article mentions the exemptions for smartphones and the like but that Video Game Consoles are not covered by the exemptions.
 
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I think a bunch of you are overthinking this right now and you should just wait and see how things check out and be adults and budget yourself better as well. I think what's happening now is necessary regardless of the hyperbole and I will argue with that until proven differently because all right now is just a bunch of scare tactics without seeing how everything is going to shake out in 6 months but it's easy to be the cynic and then when things get better then you move on to the next in the complain about when it comes to the president.

How often were you talking about tariffs even 10 years ago? Now everybody thinks their arms are experts and I tend to lead on the positive side until proven that the route is not going right and let me tell you, wait it out for a year to see how completely things shake out and policies get in place in order to make the difference and all you can go by is his first term. That's why most people voted them in and that's why I have approve of what he's doing as well

This country is obese and overweight and one of the guys that's trying to trim all that and get us into shape to live a longer life is the one people are easy to criticize. You want to live a longer life or not?
 
LiquidMetal14 said:
I think a bunch of you are overthinking this right now and you should just wait and see how things check out and be adults and budget yourself better as well.
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No one, especially Trump, knows how this will "check out." So how do you expect companies and consumers to prepare themselves?

The moment things were looking stable with the tech exemption executive order, Trump suddenly went "LOL NOPE" to it. How do you possibly prepare for any of this?
 
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I suppose if this happens, Vietnam will be supplying the U.S. while China handles the Euro and Japan markets? I guess the main question then is how many units is Vietnam knocking out in comparison?
 
LiquidMetal14 said:
I think what's happening now is necessary regardless of the hyperbole and I will argue with that until proven differently because all right now is just a bunch of scare tactics without seeing how everything is going to shake out in 6 months but it's easy to be the cynic and then when things get better then you move on to the next in the complain about when it comes to the president.
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Trump has zero intention of ever lifting the tariffs. He wants to abolish income tax so he can personally benefit along with his billionaire friends. Tariffs are meant to replace the funding of whatever minimal government will be left after they destroy the rest, which is the most regressive possible taxation model imaginable. The poor will pay a giant portion of their income in taxes for every day basics while the wealthiest will become permanent oligarchs that barely even notice things like an increase in price for cheap consumer goods. Without any form of income tax, they will become royalty permanently generation after generation. Has nothing to do with fixing the country. Has to do with Trump getting paid at the country's expense. That's it. Manufacturing is never coming back like people imagine in the 1950s before they were even born. If anything comes back, it will largely be automated and robotics driven leading to a tiny fraction of the jobs people expect. All it is, is a giant tax hike for the poor and a giant tax cut for the rich. That's all it is.
 
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Skifi28 said:
I think even Trump has no idea what Trump's intentions really are.
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Not to derail this any further, but I disagree. He's talked about the era he wants to go back to and it's not the 1950s. It's the 1900s. He's talked about "we're going to take in so much money, we'll have too much money. What a great problem to have?" He's laying the ground work for abolishing all income tax. "We have so much money we don't even need an income tax now." All the "so much money" is coming from everyone paying more for basics and every day goods. It's clear as day to me. Only question is if he can achieve it, or if bond markets collapse or his own staff or congress block him before he gets there.
 
LiquidMetal14 said:
This country is obese and overweight and one of the guys that's trying to trim all that and get us into shape to live a longer life is the one people are easy to criticize. You want to live a longer life or not?
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Wait, we're supposed to take weight loss advice from HIM?!


MydIHRE.gif
 
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Punished Miku said:
Not to derail this any further, but I disagree. He's talked about the era he wants to go back to and it's not the 1950s. It's the 1900s. He's talked about "we're going to take in so much money, we'll have too much money. What a great problem to have?" He's laying the ground work for abolishing all income tax. "We have so much money we don't even need an income tax now." All the "so much money" is coming from everyone paying more for basics and every day goods. It's clear as day to me. Only question is if he can achieve it, or if bond markets collapse or his own staff or congress block him before he gets there.
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Reminds me of when goverments were betting on collective immunity during COVID, it could've worked but the damages were too great to keep betting on it so they backpedaled at some point
 
Punished Miku said:
Not to derail this any further, but I disagree. He's talked about the era he wants to go back to and it's not the 1950s. It's the 1900s. He's talked about "we're going to take in so much money, we'll have too much money. What a great problem to have?" He's laying the ground work for abolishing all income tax. "We have so much money we don't even need an income tax now." All the "so much money" is coming from everyone paying more for basics and every day goods. It's clear as day to me. Only question is if he can achieve it, or if bond markets collapse or his own staff or congress block him before he gets there.
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I think people are giving him too much credit. He's borderline senile at this point and will be in a retirement home trying to remember his family's names before long. Whatever master plan he has in store, I'm not sure he'll be able to remember it by next week when he'll be back-pedaling yet again.
 
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Radical_3d said:
This is all old news. Electronic components are exempt from tariffs in the US (as for the second I'm writing this, maybe when Big Cheeto wakes up things change).
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That old news is actually new news that was published today. The exemptions aren't as all-encompassing as we thought a few days earlier.
 
Buggy Loop said:
I thought it was mainly Vietnam?

Anyway, no more exemptions today!

A flip flop happened during weekend probably as he was thinking which club to pick at the 18th hole

www.huffpost.com

Trump Admin Walks Back Tariff Exemption On Electronics

U.S. Customs and Border Protection claimed late on Friday that imported electronics, such as smartphones, laptops and more, would be exempt from Trump’s tariffs.
www.huffpost.com www.huffpost.com

Tired Tv Land GIF by TV Land Classic
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Ah yes, we are back to Lutnick's "millions of screws" and robot mechanics dream.

Man, the market is so going to tank on Monday alongside bonds as well again. What a bunch of clowns. 🤡
 
Punished Miku said:
Trump has zero intention of ever lifting the tariffs. He wants to abolish income tax so he can personally benefit along with his billionaire friends. Tariffs are meant to replace the funding of whatever minimal government will be left after they destroy the rest, which is the most regressive possible taxation model imaginable. The poor will pay a giant portion of their income in taxes for every day basics while the wealthiest will become permanent oligarchs that barely even notice things like an increase in price for cheap consumer goods. Without any form of income tax, they will become royalty permanently generation after generation. Has nothing to do with fixing the country. Has to do with Trump getting paid at the country's expense. That's it. Manufacturing is never coming back like people imagine in the 1950s before they were even born. If anything comes back, it will largely be automated and robotics driven leading to a tiny fraction of the jobs people expect. All it is, is a giant tax hike for the poor and a giant tax cut for the rich. That's all it is.
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The truly rich mostly don't pay income taxes anyways. Their money doesn't come from 9-5, W2s and so on for the most part. This is why Bezos and Musk don't pay any income taxes and sometimes even get refunds.

The really wealthy get their money from investments. At most they may pay some capital gains tax, which at 15% is very low, but that can be offset by so many other loopholes that it's immaterial. And really rest of the money is in their ownership of businesses, real estate, hidden overseas and so on.

Income taxes really hits mostly professional crowd, ie doctors, lawyers, highly paid tech people, etc… and really if you make $1mil+ you are probably hiding most of that behind a loophole or three anyways.

So in short, this whole moronic tariff exercise isn't to shield Trump's $billionaire friends from income tax. However I bet a lot of them made and will be making lots of $$$ by shorting the market at opportune times and then buying back up on leverage before selling immediately. In short, inside trading, but who is going to investigate that?
 
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LiquidMetal14 said:
This country is obese and overweight and one of the guys that's trying to trim all that and get us into shape to live a longer life is the one people are easy to criticize. You want to live a longer life or not?
Click to expand...

By reducing overall consumer spending I assume

Physiognomonics said:
It was about time Nintendo and Sony make (well assemble, basically soldering components made in Taiwan) their consoles in US
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That 70S Show Lol GIF by Peacock
 
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