Nintendo shares get red-shelled as investors fear tariff-related Switch 2 price hikes

Nintendo shares sank more than 9% during Tokyo trading, their biggest sell-off since August. Just after the US market open, ADRs listed here are trading down 6.8%.

The dip appears to be a reaction to President Trump’s increased tariffs on China, which jumped to 20% on Tuesday. A huge amount of console manufacturing occurs in the country, and many parts are sourced from there. Investors also sold off Tokyo-traded shares of Sony, which fell 4% overnight, and Konami, which dropped 7%. (Sony ADRs were down only 1.5% in US trading after the open.)

Investors are worried that Nintendo could raise the price point of the Switch 2 in response, potentially hurting initial sales. About 40% of Nintendo’s console sales come from the US. Video game analysts that spoke with Sherwood News called trade policy uncertainty “the paramount risk” for Nintendo’s upcoming Switch 2 release.

Nintendo addressed tariffs on its earnings call last month, stating that Switches are also produced in Vietnam and Cambodia.

“A certain impact is expected, but the impact on our performance this fiscal year will be minor,” Nintendo President Shuntaro Furukawa said at the time.