ESA on Trump Tariffs: More Than Just Switch 2 at Stake

The past 48 hours have been a whirlwind for both economics enthusiasts and Nintendo fans. On Wednesday, it was revealed that the Nintendo Switch 2 would be priced at $450 in the United States, a steep price point that analysts attribute to anticipated tariffs, as well as other factors such as inflation, market competition, and rising component costs.

Then, late last night, the Trump Administration announced sweeping 10% tariffs on virtually all countries, with significantly higher tariffs targeting nations like China, the EU, Japan, Vietnam, Canada, Mexico, and others. In a swift response, China announced a 34% reciprocal tariff on all U.S. goods this morning. Just hours later, Nintendo declared a postponement of Nintendo Switch 2 pre-orders in the U.S., as it assesses the impact of these tariffs on its console strategy.

This unprecedented scenario is leaving everyone, from industry insiders to the general public, grappling to understand its full implications. Merely 30 minutes before Nintendo's surprising pre-order announcement, I had a conversation with Aubrey Quinn, a spokesperson for the Entertainment Software Association (ESA), to discuss the broader effects these tariffs could have on the gaming industry.

The ESA is currently navigating this complex situation, with Quinn acknowledging that some level of tariffs was expected, given past actions by the Trump Administration and discussions during his campaign. She noted the potential for retaliatory measures from countries like China and the possibility of further U.S. tariffs. However, the exact outcomes remain uncertain.

Despite the uncertainty, the ESA is clear about 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. And so our goal is to work with the administration, to work with other elected officials to try to find a solution that doesn't damage U.S. industries, U.S. business, but also American gamers and families.”

Quinn elaborated that the impact would not be limited to the price of gaming systems. She noted, “It’s hard to imagine a world where tariffs like these don’t impact pricing.” Beyond pricing, she highlighted the broader economic effects, including reduced consumer spending, which would affect company revenues, potentially leading to job cuts and decreased investment in research and development. This could also influence the design and features of future consoles. “The entire consumer ecosystem is connected,” she emphasized.

The ESA is taking action, though Quinn admits it has been challenging to start, given the new Trump Administration's short tenure and the appointment of new cabinet members. However, they are actively working to establish connections and engage in dialogues with key figures. Quinn said, “But yes, 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 voice their concerns to U.S. Trade Representative Jamieson Greer before the tariff news broke. They are also seeking meetings with various legislators and administration members to discuss these issues. When asked about the effectiveness of these efforts, Quinn confirmed that discussions are underway at various levels of government, though not yet at the highest echelons. She stressed that this issue transcends the video game industry, affecting a wide range of consumer products.

For concerned consumers, Quinn advised reaching out to their representatives through letters, calls, emails, or social media to express their concerns. She believes that increased communication from constituents can influence government action. “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.”

Just minutes after our conversation ended, Nintendo announced the suspension of Nintendo Switch 2 pre-orders due to the tariffs. Although the ESA does not comment on individual company decisions, Quinn reflected on the broader industry impact, noting the unfortunate timing of the Switch 2 reveal with the tariff announcements. She emphasized that the effects would be felt across all gaming platforms, from consoles to VR headsets and smartphones. “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.”