What Next: TBD | Tech, power, and the future Trump Tariffs Hit Mushroom Kingdom
Apr 11, 2025
Jason Koebler, co-founder of 404 Media, discusses the intertwining fate of gaming and politics as President Trump's tariffs complicate Nintendo's launch of the Switch 2. He delves into the potential financial strain on gamers due to increased console prices and the strategic shifts in Nintendo's manufacturing from China to Vietnam and Cambodia. Koebler also touches on the broader implications of reshoring electronics manufacturing in the U.S. and highlights how these economic changes impact both major corporations and smaller firms in the tech landscape.
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Nintendo's Manufacturing Shift Challenges
- Nintendo tried moving manufacturing from China to Vietnam and Cambodia to avoid tariffs.
- New tariffs on Vietnam and Cambodia forced them to rethink these plans, causing uncertainty.
Supply Chain Stability Matters
- Manufacturers rely on stable, predictable supply chains that take years to build.
- Sudden tariffs on new manufacturing countries disrupt long-term plans and increase costs unexpectedly.
Electronics Need Global Supply Chain
- Fully made-in-USA electronics are not currently feasible due to rare materials and complex components sourced globally.
- Reshoring assembly is possible, but the global supply chain will remain essential and affected by tariffs.