President Trump announced a trade deal with Vietnam, which puts a 20% tariff on all goods originating from the country. This might seem like a good deal, especially as the latter originally had a 46% tariff before Trump paused the tariffs he put on all the U.S.’s trade partners for 90 days, dropping down the numbers to just 10%. Unfortunately, Nintendo, which manufactures the Switch 2 consoles in Vietnam, used the 10% tariff amount for its earnings forecast, according to PCMag. This means that the tariff change may throw a wrench into its plans.
The Nintendo Switch 2 launch has been relatively successful, with the company selling 3.5 million units on the opening weekend and obliterating the record of the original Switch by a full million. But despite seemingly arriving in good numbers in the U.S. and the U.K., customers from other countries have complained of shortages, with its president, Shuntaro Furukawa, apologizing to shareholders for failing to anticipate the massive demand.
