‘Mamma mia!’: Trump tariffs refund ignites 53% profit spike at Nintendo
Summary
Nintendo’s profits rose by 53.5% in the three months to June, helped by a refund from tariffs imposed under President Trump’s administration. Although sales dropped 10% compared to last year, the refund offset this and boosted earnings.Key Facts
- Nintendo’s profit reached ¥147.4 billion (£694 million), much higher than the expected ¥77.8 billion.
- Sales of the Switch 2 console and popular games remained strong but overall sales fell by 10% to ¥517.8 billion.
- The US Supreme Court ruled that President Trump’s tariffs, called “Liberation Day” trade levies, were illegal.
- About $100 billion of the $165 billion collected in tariffs has been refunded by the US government.
- Nintendo filed a lawsuit demanding a full refund with interest for the tariffs it paid.
- The company’s shares rose by 2.87% after announcing the earnings.
- Nintendo faces a class action lawsuit claiming it raised prices due to tariffs but did not lower prices after the refund.
- President Trump recently imposed new tariffs on more than 80 countries, including Japan, affecting companies like Nintendo.
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