Japan’s video game industry faced a steep stock market drop due to new tariffs imposed by U.S. President Donald Trump.

White House officials announced targeted reciprocal tariffs on approximately 60 nations deemed significant trade violators, effective April 9. Japan faces a 24% tariff rate under this policy.

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

Tariffs function as taxes on imported goods, often increasing costs for consumers when companies pass them on. For gamers, this could mean higher prices for tech and gaming products.

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 slid 12.5% in afternoon trading.

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

At 10 a.m. Monday in Japan, gaming stocks reacted sharply to these burdensome 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 gaming companies fared even worse.

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

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

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

Nintendo Switch 2 includes:

Niko Partners analyst Daniel Ahmad noted that Trump’s unexpected tariffs on countries like Vietnam, where Nintendo moved some Switch 2 production to avoid U.S. tariffs on China, likely prompted strategic adjustments.

“Despite shifting some manufacturing to Vietnam to mitigate U.S. tariffs on China, the looming reciprocal tariffs before the Switch 2 reveal likely pushed Nintendo to consider higher global pricing,” Ahmad explained. “The tariffs on Vietnam and Japan exceeded expectations, and Nintendo will face significant impacts if fully enforced.”

Nintendo enthusiasts and analysts now fear further price hikes for the Switch 2 and its games, amid 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 increases.

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

The BBC reports that Trump defended the tariffs, stating, “Sometimes you need tough measures to solve big problems.”

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.