Nintendo, the Japanese video game giant, plans to transfer part of the production of its game consoles, called “Switch,” from China to Vietnam. The move, written by the Japanese business paper Nikkei Asian Review, is expected to take place soon. This decision is linked to fears of a trade war between Washington and Beijing, which could affect Nintendo’s exports to the United States.
Eighteen million consoles sold by Nintendo in the fiscal year 2018, 40% were exported to the Americas and primarily to the United States, which is Nintendo’s largest market. At the moment, Switch is not subject to US tariffs, but the company fears the weight of the 25% rights threatened by Donald Trump on imports from China.
To date, most of the Switch’s production is done in China by companies such as Foxconn. According to Nikkei, their Vietnamese facilities will assume some of this work “in a few months.”