Japanese video game companies have experienced a steep stock market drop due to U.S. President Donald Trump's new tariffs.

White House officials announced targeted reciprocal tariffs on about 60 countries deemed significant trade violators, effective April 9. Japan faces a 24% tariff rate.

According to Trump administration officials, these nations impose higher tariffs on U.S. products, create non-tariff trade barriers, or engage in practices seen as detrimental to U.S. economic interests.

Tariffs act as taxes on imported goods, often passed on to consumers rather than absorbed by companies in the supply chain. This could lead to higher prices for tech and gaming products, impacting gamers directly.

Japan's Nikkei 225 index fell 7.8%, Australia's ASX 200 dropped 4.2%, and South Korea's Kospi declined 5.6%. China's Shanghai Composite closed down 7.3%, Taiwan's Weighted Index lost 9.7%, and Hong Kong's Hang Seng fell 12.5% in afternoon trading.

Dr. Serkan Toto, CEO of Kantan Games, reported significant declines in Japanese video game stocks on April 7 morning: Nintendo fell 7.35%, Sony 10.16%, Capcom 7.13%, and Sega 6.57%.

It's Monday 10am in Japan, where Japanese game stocks are reacting sharply to these misguided tariffs:

Nintendo -7.35%
Sony -10.16%
Bandai Namco -7.03%
Konami -3.93%
Sega -6.57%
Koei Tecmo -5.83%
Capcom -7.13%
Square Enix -5.23%

Mobile game companies are faring even worse.

— Dr. Serkan Toto (@serkantoto) April 7, 2025

Last week, Nintendo stunned the gaming community by delaying U.S. pre-orders for the Nintendo Switch 2, citing tariff-related uncertainty. Originally scheduled for April 9, U.S. pre-orders are postponed, though the June 5 release remains on track. Pre-orders proceed as planned elsewhere.

Nintendo priced the Switch 2 at $449.99, with a Mario Kart World bundle at $499.99. Mario Kart World is priced at $79.99.

Nintendo Switch 2 includes:

Niko Partners analyst Daniel Ahmad warned that Trump's unexpected tariffs on countries like Vietnam, where Nintendo moved some Switch 2 production to avoid U.S. tariffs on China, may have prompted a pricing reassessment.

"Nintendo shifted some manufacturing to Vietnam to mitigate U.S. tariffs on China, but the looming reciprocal tariffs before the Switch 2 reveal likely forced a higher global price," Ahmad explained. "With Vietnam and Japan facing steeper-than-expected tariffs, Nintendo will face significant pressure if these measures take full effect."

Nintendo fans and analysts now worry that the company may further increase Switch 2 and game prices, despite backlash over the console’s initial pricing.

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Sony, which produces PlayStation consoles including the $700 PlayStation 5 Pro, also faces uncertainty. IGN has reached out to Sony for comment on potential U.S. price hikes.

Goldman Sachs now estimates a 45% chance of a U.S. recession within the next year, up from 35%. JPMorgan projects a 60% chance of a U.S. and global economic downturn.

The BBC reports that Trump defended the tariffs, stating, "Sometimes you need tough measures to solve a problem."

For more details, explore all announcements from the Switch 2 Nintendo Direct and expert insights on the Switch 2 price and Mario Kart World’s $80 price.