President Donald Trump’s decision earlier this week to temporarily spare most countries from higher tariff rates announced last week will give companies such as Nintendo a vital window to ship in as many of their products into the US before the punishing tariffs come into effect.

Nintendo is poised to release its Switch 2 console which will be available in the US and in Australia too on June 5.

Roughly a third of Switch 2 units are assembled in Vietnam, a country which faced a 46% tariff rate. But with the temporary 90-day pause, Vietnam will now only face a 10% universal tariff on imports to the US.

The US accounts for more than a third of Nintendo’s sales. Shares in Nintendo jumped 12% on Thursday.

 

Hosiden, one of three main Switch 2 assemblers, shipped more devices in February to the US from Vietnam than in the previous six months combined, according to customs data provided by NBD, reported Bloomberg.

“If the tariffs stay at 10%, Nintendo probably keeps pricing at $450 (A$722) and just takes the hit on margin,” said Bernstein analyst Robin Zhu. “At 46% Vietnam tariffs, I expected them to raise by $50 (A$80) to $100 (A$160).”

In Australia, the Switch 2 console is already available for pre-orders from retailers such as JB Hi-Fi for A$699.

The Switch 2 has enhanced features, including support for 4K HDR resolution, high refresh rates and a new ‘mouse mode’ via the updated Joy-Con 2 controllers.

It boasts a larger 7.9-inch display and new social features that aim to enhance multiplayer gaming.

Nintendo has lined up a strong collection of launch titles, including Mario Kart World, Donkey Kong Bananza, and Project 007 – a new James Bond game, revisiting the classic GoldenEye 007 experience.

Ahead of the new console’s launch, Nintendo will host ‘Switch 2 Experience’ events in Melbourne and other major cities worldwide, giving players the chance to try out the device before it is released.