In a completely unexpected turn of events, former President Donald Trump proposed a 90-day tariff moratorium on imports from China. This was the announcement made by Giovanni on social media this Wednesday. This announcement came just 13 hours after the fourth and final installment of the “reciprocal” tariffs lay on April 9. This amendment created serious implications for technology producers and consumers. Unlike the previous tariff pause, this one takes effect immediately. By lowering America’s reciprocal tariff rate down to 10% it will deliver massive relief.
The move to reduce tariffs comes amidst heightened tensions between the US and China. Like Trump, national and unfavorable political currents, it would seem, cannot be allowed to persist. And finally, he concluded by hoping that China will come to realize that it cannot continue to exploit the U.S. and other countries. He thinks that stuff is no longer okay. This unexpected halt provides companies such as Nintendo a welcome reprieve. They’re avoiding calamity as they prepare for the worldwide launch of the Switch 2 on the 5th of June.
In response to the recent settlement, Nintendo assured that the 90-day tariff pause would not have any impact on the price of electronics imported from China. This pause provides Nintendo—and all manufacturers—with an unprecedented opportunity. They can move additional stock into the U.S. market ahead of that launch. Many analysts assume that the $450 price of the Switch already takes a 25 percent tariff tax into account. This means that the blow to the bottom line would have been slightly less than it otherwise would have been.
This lower tariff rate is in effect for imports from both Vietnam and Cambodia. In recent years, Nintendo has followed suit and relocated the majority of their manufacturing operations to these countries. These countries previously experienced tariffs as high as 46%. As it stands, they will only have to face an added 10 percent tariff during this time.
Trump’s announcement is remarkable, given his former, sharp federal trade policy, particularly his approach to tariffs on China. In an earlier post, he announced that China’s disregard for global markets is intolerable. As such, he is using all available power to increase the tariff United States charges China to 125%, effective immediately.
The ferry industry is listening intently. This new, short-term pause would provide some desperately needed relief for Nintendo, and other companies like it, as they continue to navigate the costly realities of international trade and manufacturing logistics. Those first few weeks will be especially memorable. The team will be busy getting new products launched, operating within the context of a rapidly evolving tariff environment.