ESA Responds to Trump Tariffs: ‘If We Think It’s Just the Switch 2, Then We Aren’t Taking it Seriously’

The past 48 hours have been a whirlwind for both economics enthusiasts and Nintendo fans alike. On Wednesday, it was revealed that the Nintendo Switch 2 would launch at a steep price of $450 in the United States. Analysts attribute this high cost to a combination of factors, including anticipated tariffs, inflation, competition, and the rising costs of components.

The situation escalated further when, late last night, the Trump Administration announced sweeping 10% tariffs on goods from nearly every country, with significantly higher tariffs imposed on 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. Amidst this escalating trade war, Nintendo decided to postpone pre-orders for the Nintendo Switch 2 in the U.S., as they reassess the impact of these tariffs on their console strategy.

This unprecedented series of events has left analysts, experts, and the public grappling to understand the full implications. Just 30 minutes before Nintendo's pre-order 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.

The ESA, like many, is still piecing together how these developments will unfold. Quinn noted that while they anticipated some form of tariffs due to Trump's previous actions and campaign rhetoric, the extent of retaliation from countries like China and the potential for further U.S. levies remain uncertain. However, the ESA is clear on one thing: these tariffs will negatively impact 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. "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 detrimental effects extend beyond just the cost of gaming systems. She pointed out that consumer spending would be affected, which in turn would influence company revenues, job stability, investments in research and development, and even the design of future consoles. "The entire consumer ecosystem is connected," she emphasized.

In response, the ESA has taken initial steps, though Quinn admits it's challenging to move forward quickly. Despite the expected tariffs, the newly appointed Trump Administration, with many members only recently in their positions, has limited the ESA's ability to leverage past relationships. Nonetheless, the ESA is actively engaging with key figures and working to ensure their concerns are understood.

"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," Quinn concluded.

The ESA has already joined forces with 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 these efforts were making a difference, Quinn confirmed that discussions are indeed taking place across different levels of government, though not at the highest level with Trump himself.

"Yes. I can tell you conversations are happening with... I don't want to say every level," she said. "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 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."

Nintendo's decision to pause Nintendo Switch 2 pre-orders came just minutes after our discussion ended. When I sought further comment from Quinn on this, she clarified that the ESA does not comment on decisions made by individual companies. However, she reflected on the coincidental timing of the Switch 2 reveal and Trump's tariff announcement, emphasizing the broader impact on the gaming industry.

"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."