Shares of Nintendo Plunge Amid Tariff Concerns
Super Mario maker Nintendo saw a significant drop in its stock price, marking the largest decline in seven months. This sudden plunge comes as investors in Japan are abandoning video game stocks due to fears surrounding U.S. President Donald Trump’s tariffs.
On the Tokyo stock exchange, Nintendo fell by 9.2%, representing its most substantial intraday decrease since the market turmoil on August 5. Just last month, the company’s shares had reached an all-time high, showing a 23% increase for the year until Friday’s sharp decline.
Analysts are pointing to Trump’s recent tariff implementations as a major factor affecting the gaming industry. With the new levies in place, game consoles, including the much-anticipated Switch 2, could face higher prices in the U.S. market. This is primarily due to increased import costs, as many consoles are either manufactured in China or rely on Chinese suppliers for components.
According to Nathan Naidu, an analyst at Bloomberg Intelligence, Trump’s decision to raise duties on Chinese imports from 10% to 20% on March 4 is likely to impact the gaming sector significantly.
