Source: Ars Technica

Nintendo May Face Pressure to Share Refunds with Gamers Who Helped Pay Tariffs

Last Friday, Nintendo joined thousands of companies suing the Trump administration to secure full refunds—plus interest—for billions in unlawful tariffs collected under the International Emergency Economic Powers Act (IEEPA).

The Lawsuit

In its complaint, Nintendo points out that the administration has already conceded that more than $200 billion in refunds are owed to hundreds of thousands of importers who paid tariffs, regardless of liquidation status. See the related coverage on billions in unlawful tariffs and the industry’s “tariff hell” situation here.

Nintendo’s Concerns

• The administration may try to avoid paying refunds to companies whose tariff payments have already been liquidated (i.e., duties were finalized).
• The government argues it will only refund importers if a court orders a re‑liquidation—voiding all finalized tariffs.
• Nintendo fears the government will delay refunds until the Court of International Trade intervenes, leaving importers in limbo.

“All liquidated entries including IEEPA duties must be reliquidated. This Court has the authority to reliquidate entries subject to the IEEPA duties.” – Nintendo’s filing

What Nintendo Is Asking For

1. Prompt refunds for all companies harmed by the unlawful trade policy.
2. A court order blocking officials from further liquidating tariff payments.
3. An order re‑liquidating any already‑liquidated entries to ensure all importers can be made whole.

Nintendo argues that without a ruling barring the government from claiming “liquidation prevents the Court from ordering refunds,” the company will suffer “imminent irreparable harm.”

The company believes the Trump administration has no intention of opposing such a court order and that the judiciary’s “rubber‑stamp” approval is all that’s needed to move forward.

Gamers May Want Nintendo to Share Refunds

Nintendo of America declined to comment on whether the company has estimated the total tariff refund owed or to share any public financial documents that estimate total tariffs paid, so it’s hard to know exactly how big the refund could be.

“We can confirm that we filed a request,” Nintendo of America said regarding the lawsuit. “We have nothing else to share on this topic.”

It’s possible that Nintendo is uncomfortable sharing an estimate for its tariff refunds publicly because the company has faced backlash over both ordinary and tariff‑related price increases in the past year. Publishing an estimate could revive that backlash, with customers demanding that Nintendo pass partial refunds on to those who helped pay the tariffs.

Timing of the IEEPA Tariffs

• Trump’s IEEPA tariffs took effect in April 2025, just as Nintendo was gearing up to release the Switch 2.
• The sudden tariffs caused delays for pre‑orders (see Ars Technica), but the console launched as planned because Nintendo refused to let the tariffs disrupt the official rollout.

Price Shock for Gamers

• The Switch 2 launched at $450, higher than many expected.
• A swarm of disgruntled online protesters urged Nintendo to “drop the price.”

There was speculation that the price hike was linked to tariffs, but Nintendo of America President Doug Bowser told The Verge that the jump from the Switch’s debut price of $300 was not directly due to tariffs. Instead, Nintendo had joined other game companies in raising console prices to historic highs (see the Ars Technica review). Bowser did acknowledge that Trump’s tariffs were still “fresh” and that Nintendo was “actively assessing what the impact may be.”

Nintendo’s Internal Calculus

In May, President Shuntaro Furukawa foreshadowed tariff‑linked price considerations (reported by GamesIndustry.biz). He noted:

“Software isn’t as impacted, but hardware involves special factors such as tariffs, which Nintendo must take into account while conducting careful and repeated deliberations when determining price.”

Furukawa explained the broader policy:

“Our basic policy is that for any country or region, if tariffs are imposed, we recognize them as part of the cost and incorporate them into the price. However, this year marks our first new dedicated video‑game system launch in eight years, so given our unique situation, our priority is to maintain the momentum of our platforms, which is extremely important for our dedicated video‑game platform business. Consequently, if the assumptions on tariffs change, we will consider what kind of price adjustments would be appropriate, taking into account various factors such as the market conditions.”

Subsequent Price Moves

• By August, the Switch 2 price remained stable.
• Nintendo increased prices on the original Switch and Switch 2 accessories, citing “market conditions” (see Ars Technica).

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The backlash against Nintendo’s pricing adjustments suggests that many major players in the gaming industry may face similar consumer demands to share any refunds they receive from tariff relief.

Nintendo May Get Creative to Avoid Backlash

Early on during Trump’s IEEPA tariff regime— which randomly raised and decreased tariffs on products from all major U.S. trading partners— the Entertainment Software Association warned that the entire game industry could be harmed by unchecked tariffs. Read the ESA statement.

The Consumer Technology Association (CTA), a long‑time opponent of IEEPA tariffs, forecasted before Trump took office that his tariff threats risked harming consumers by immediately increasing game‑console prices by 25 %. Ars Technica forecast.

That forecast only grew darker as 2025 progressed. In May, while China and Trump were still embroiled in tit‑for‑tat retaliations, CTA warned that an estimate showed only 1 % of game consoles are produced in the U.S. If IEEPA tariffs weren’t changed to exempt consoles, average console prices could exceed $1,000, an increase of about 69 %. CTA estimate.

Unclear Financial Impact

• It is unknown how much Nintendo and other gaming companies paid in tariffs.
• It is also unknown how much customers paid in tariff‑related price increases; that information will likely remain unavailable.
• No courts are currently considering whether customers who indirectly funded tariffs should receive refunds.

Companies’ Current Focus

Dallas Dolen, a technology, media, and telecommunications leader for PwC, told Ars that most firms are now laser‑focused on securing refunds. Once those refunds are obtained, some companies worried about reputational harm may adopt “creative” ways to reimburse customers, such as offering discounts.

“The main point that we’ve made over and over and over again is that this impacts consumers in the form of potentially higher costs for products,”
— Ed Brzytwa, CTA’s Vice President of International Trade, to Ars.

Tariff Burden on Consumers

A recent Cato Institute analysis showed that tariff costs have generally been borne by U.S.–based companies and consumers.

• “Americans are bearing most of the tariffs’ economic burden, including through higher retail prices,” the institute reported.
• A Goldman Sachs study projected that by the end of 2025 the consumer share of the tariff burden would rise to 55 %.
• A Yale Budget Lab study found that the share of costs passed on to companies and consumers increased over time.

There is still no clear indication whether companies that passed on tariff costs will later pass on relief, or simply keep prices stable as new tariffs are introduced.

Outlook for Nintendo and Other Consumer‑Tech Firms

Refunds may provide a temporary reprieve but do not constitute relief from “tariff hell.” As Trump looks to replace struck‑down IEEPA tariffs with new duties that could target semiconductors or other currently exempt tech products, Dolen warned that tech companies “don’t feel better that there might be some, quote, win here because the supply chain still feels overwhelming.” The best outcome for Americans may be that prices do not rise further as Trump attempts to keep his tariff regime alive.

A Glimmer of Hope

Public opinion is largely against Trump’s tariffs across the board, and consumers are already frustrated by missing out on tariff refunds. Experts suggest that, ahead of the midterm elections, Trump is likely aware that additional tariff‑related price hikes will not be tolerated. ABC News poll

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About the Author

Ashley Belanger is a senior policy reporter for Ars Technica, dedicated to tracking the social impacts of emerging policies and new technologies. She is a Chicago‑based journalist with 20 years of experience.

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