To Navigate Trump’s Tariffs, Apple and Nintendo Take Different Paths

Summary

WSJ Tech News Briefing: To Navigate Trump’s Tariffs, Apple and Nintendo Take Different Paths
Release Date: April 15, 2025
Host: Victoria Craig, The Wall Street Journal

---

Introduction

In the April 15th episode of WSJ Tech News Briefing, host Victoria Craig delves into how two major global tech companies, Apple and Nintendo, are strategically responding to the tariff policies implemented under President Trump's administration. While Apple adopts a long-term approach to mitigate the impact of tariffs, Nintendo opts for a more immediate pivot to sustain its market presence in the United States.

---

Apple’s Long-Term Strategy Amid Tariffs

Tariff Implications for Apple:
Apple, the world's most valuable company, heavily relies on manufacturing in China for its iPhones. The imposition of tariffs threatened to significantly increase the costs of importing these devices into the U.S. market. Despite the administration's temporary exemption of certain tech products, including smartphones, Apple faces ongoing uncertainty due to potential future tax implementations.

Tim Higgins' Insights:
Wall Street Journal columnist Tim Higgins highlights Apple's proactive measures:

"Apple was rushing iPhones made in India to the US to help offset some of the cost of potentially huge tariffs being put on Chinese made iPhones" (02:17).

Higgins emphasizes Tim Cook's steady leadership:

"Tim Cook has developed a steady and patient hand... He wasn't going to be shy" (02:50).

Relationship with the Trump Administration:
Victoria Craig discusses Tim Cook's relationship with the Trump administration, noting his strategic donations and emphasis on Apple's contribution to the U.S. economy:

"Tim Cook are always very quick to talk about how critical they are to the US Economy... Apple has been working to diversify its supply chain" (03:12; 04:27).

Higgins further explains Apple's comprehensive approach:

"Apple has been ramping up production in India... moving that is not something you do overnight" (04:27).

Long-Term Vision vs. Immediate Policy Demands:
Apple's strategy focuses on gradual diversification of its supply chain, contrasting with the Trump administration's demand for swift changes. Higgins points out the inherent conflict:

"Tim Cook's kind of vision of the long arc of time making plans for the years ahead versus Trump administration wanting things to happen very quickly" (06:20).

---

Nintendo’s Immediate Pivot to Mitigate Tariffs

Shift in Manufacturing Locations:
In contrast to Apple, Nintendo swiftly adjusted its manufacturing strategy to counteract the high tariffs imposed on Chinese imports. Using a "China plus one" strategy, Nintendo diversified its production to countries like Vietnam and Cambodia, ensuring a steady supply of its highly anticipated Switch 2 console in the U.S. market.

Christopher Mims on Consumer Impact:
WSJ tech columnist Christopher Mims provides a personal perspective:

"My two sons... have been saving all of their pennies in order to buy one of these" (07:47).

He underscores the significance of the Switch 2 launch:

"There are 190 million gamers in the United States... the level of anticipation for the Switch 2 is through the roof" (07:47).

Operational Adjustments and Pricing Strategies:
Mims discusses Nintendo's ability to navigate tariff challenges without significantly altering the console's price point:

"Nintendo could potentially sell the Switch 2 at its original $450 price because the tariffs are only... 10% from Vietnam" (09:36).

He also explains Nintendo’s preemptive measures:

"Nintendo ships these consoles the quarter before they're going to be distributed to retailers... sitting at a warehouse in Seattle" (09:36).

Future Manufacturing Prospects:
Addressing the possibility of American manufacturing, Mims is optimistic yet realistic:

"Everything depends on your time horizon... probably gonna end up being made in Mexico" (11:18).

---

Comparison & Implications

Strategic Approaches:

• Apple is focusing on long-term diversification, investing in establishing production capabilities in multiple countries to mitigate tariff impacts gradually.
• Nintendo is implementing a short-term pivot, swiftly relocating manufacturing to Vietnam and Cambodia to maintain pricing and supply stability in the U.S. market.

Economic Considerations:
Both companies must balance cost, quality, and time in their strategic planning. Apple's extensive investment in supply chain diversification contrasts with Nintendo's need for immediate solutions to meet consumer demand and prevent price hikes.

Consumer Impact:
Apple's delays and potential future tax implications could affect product pricing and availability. In contrast, Nintendo's agile manufacturing shift aims to preserve the Switch 2's affordability and timely release, enhancing customer satisfaction.

---

Notable Quotes

• Tim Higgins on Apple’s Response:

  "Apple was rushing iPhones made in India to the US to help offset some of the cost of potentially huge tariffs being put on Chinese made iPhones." (02:17)

• Tim Cook’s Strategy:

  "Tim Cook has developed a steady and patient hand... He wasn't going to be shy." (02:50)

• Christopher Mims on Nintendo's Market Impact:

  "My two sons... have been saving all of their pennies in order to buy one of these." (07:47)

• Future Manufacturing Possibilities:

  "It's probably gonna end up being made in Mexico... companies might just give up on the US." (11:18)

---

Conclusion

The episode of WSJ Tech News Briefing provides an insightful comparison of how Apple and Nintendo are navigating the complexities of President Trump's tariff policies. While Apple leverages its robust industrial strategy to diversify and stabilize its supply chain over time, Nintendo demonstrates agility by quickly adjusting its manufacturing locations to sustain its market presence and consumer trust. These contrasting approaches highlight the diverse strategies companies must employ to adapt to evolving economic policies and global trade dynamics.

---

Produced by Julie Chang with Deputy Editor Chris Insinsley.

Transcript

[Viking Sponsor]

Viking committed to exploring the world in comfort. Journey through the heart of Europe on an elegant Viking longship with thoughtful service, cultural enrichment and all inclusive fairs. Discover [e-mail] hey T&B listeners.

[Victoria Craig]

Before we get started, a heads up. We're going to be asking you a question at the top of each show for the next few weeks. Our goal here at Tech News Briefing is to keep you updated with the latest headlines and trends on all things tech. Now we want to know more about you, what you like about the show, and what more you'd like to be hearing from us. Our question this week is what would you like to hear from the tech headlines? If you're listening on Spotify, look for our poll under the episode description or you can send us an email to tnbsj.com now onto the show. Welcome to Tech News briefing. It's Tuesday, April 15th. I'm Victoria Craig for the Wall Street Journal. Today we've got a show for you about the different way global tech companies are playing President Trump's game of Tariffs, exemptions and pauses Apple's CEO is taking a long term strategy, while Nintendo has already switched gears on how to get its gaming consoles into the US but we start with the long game. For the past two weeks, tariffs have threatened to wreak havoc on the world's most valuable company. Much of the manufacturing for Apple's iPhones happens in China, which means the tech titan faces a hefty bill when it imports finished products to sell in America. We've talked at length on this show about how Apple faces some pretty high hurdles to bringing that manufacturing process home, which is why investors were cheered by a decision that came with no fanfare. Over the weekend, the Trump administration exempted some tech products from tariffs, including smartphones, but Trump quickly caveated that move, saying he'd put in place a separate tax soon. WSJ columnist Tim Higgins writes that despite the on again, off again chaos, Apple CEO Tim Cook has developed a steady and patient hand. So Tim we didn't hear a word from Tim Cook publicly over the last two weeks, but you argue in your piece that he was likely not staying quiet behind the scenes?

[Tim Higgins]

Well, absolutely not. We've reported that Apple was rushing iPhones made in India to the US to help offset some of the cost of potentially huge tariffs being put on Chinese made iPhones and also what at the time was expected to be some increased tariffs on Indian made iPhones, but clearly trying to take some short term steps to figure it out. We also know that Tim Cook has developed a close relationship with the Trump administration. And you can just imagine that he wasn't going to be shy.

[Victoria Craig]

Are there two ways to think about how Tim Cook is keeping Trump on side in a way. One, it's that he after Trump won reelection in November, he donated to his inauguration fund. But also can he use what Apple's doing well at home to try to convince the president to perhaps be more lenient on how it treats Apple when it comes to these tariffs, Apple and.

[Tim Higgins]

Tim Cook are always very quick to talk about how critical they are to the US Economy, how many jobs they create. They've talked in recent months about investments that they're planning to make in the US These are big numbers they are throwing around. And Tim Cook has talked about in the past that he doesn't think Apple could be what it is if it wasn't a U.S. company. The way that Tim Cook just talks to lawmakers and presumably the president is in this kind of tends to be a little bit of a humble, aw shucks, Alabama accent, Americana. Apple's out there creating jobs, good for the country. That is his go to kind of stump speech, if you will. And that's the kind of message that in a lot of ways Trump wants to hear.

[Victoria Craig]

In a world with very short attention spans, it seems like Tim Cook is always playing the long game with this relationship, especially with President Trump. We've talked a lot about how these tariffs could affect and are likely to affect Apple. What kinds of things was Tim Cook likely pushing for behind the scenes?

[Tim Higgins]

There was some in the White House who were out very publicly talking about how the tariffs were going to move assembly of the iPhone to the US and those who thought that was going to happen just haven't been paying attention to Tim Cook or Apple over the past 13 years as he has been CEO. And he has really developed an incredible industrial machine that is heavily based in China, but also has suppliers around the world, including the US Set up to create these iPhones, an incredibly important part of the global economy in so many different ways. And moving that is not something you do overnight. It is not something you do in a quarter. It is not something that you do in a single year. Apple has been working in the past few years to diversify its supply chain. It has been ramping up production in India. It is doing production of its other devices in Vietnam. But it takes time. Cook has talked about the workforce in China is being skilled. He would say it's not about low cost labor. But you can't argue with the fact that the labor in China is cheaper than the U.S. but there are cheaper places in the world as well. That's his point. There's also an issue of getting the assembly and production to quality standards that Apple holds so near and dear to itself. This is something that takes a lot of time to sharpen. And so we kind of see two kind of opposing views on the world going on right now. Tim Cook's kind of vision of the long arc of time making plans for the years ahead versus Trump administration wanting things to happen very quickly, and it puts the two worlds on a collision course.

[Victoria Craig]

That was Wall Street Journal columnist Tim Higgins. Coming up, we'll tell you how Nintendo is playing the short game on tariffs and what that means if you want to get your hands on the company's latest console. That story after the break.

[Viking Sponsor]

This episode is brought to you by Chevy Silverado. When it's time for you to ditch the blacktop and head off road, do it in a truck that says no to nothing. The Chevy Silverado Trail Boss get the rugged capability of its Z71 suspension and 2 inch factory lift, plus impressive torque and towing capacity thanks to its available Duramax 3 liter turbo diesel engine. Where other trucks call it quits. You'll just be getting started. Visit chevy.com to learn more.

[Victoria Craig]

For a long time, Nintendo has had plans in place that would let it stay nimble in the face of a trade war. So when President Trump raised US tariffs on China to as high as 145% for some goods, the company was able to pivot almost instantly. WSJ columnist Christopher Mims says that sent a wave of relief through customers of all ages, including some that are very close to home. So Christopher just put into perspective for us how highly anticipated the Switch 2's launch is both in and outside your own household.

[Christopher Mims]

Within my own household, my two sons, a teenager and a yearly teenager, have been saving all of their pennies in order to buy one of these. And turns out that's not atypical. There are 190 million gamers in the United States of America. Nintendo has sold more than 50 million of the original Switch consoles in the eight years that it has been out. And the level of anticipation for the Switch 2 is through the roof. This is singly the best selling video game console in the U.S. certainly. And so the fact that kids might not be able to get their hands on it here in the US because of tariffs has made tariffs a subject of conversation among my children and apparently in many other households.

[Victoria Craig]

I was really floored by some of the numbers in your piece about just how fast Nintendo was able to shift where it's importing some of its consoles from into the U.S. nintendo, like many.

[Christopher Mims]

Other electronics manufacturers, especially Apple, really anybody with much scale ever since Trump's first term, and especially Covid, has been preparing for today. And what they have done is what's called a China plus one strategy where they are trying to source their goods, their final manufactured electronics still from China, but then also from some other place for a lot of these companies that Southeast Asia. So Nintendo in particular, it's Vietnam and Cambodia. Other companies have moved manufacturing to places.

[Victoria Craig]

Like Thailand for customers, particularly in the US the big question is going to be around pricing because people were already really wary of the $450 price tag that the Switch 2 was going to carry. Could that dollar amount go even higher because of the tariffs?

[Christopher Mims]

Initially it seemed like Nintendo was either going to have to not sell the Switch in the US which really is an impossibility for them, or possibly charge a great deal more under the original tariff scheme where they were looking at. We have to toggle back in our minds because it changed so much. But originally it was like 50% tariffs from China or 50% tariffs approximately from Vietnam. And those are the two places where they manufacture almost all of the Switch 2s. It now appears with the tariff pause that Nintendo could potentially sell the Switch 2 at its original $450 price because the tariffs are only, and I'm putting that in air quotes, 10% from Vietnam. Part of what's going on here is that Nintendo ships these consoles the quarter before they're going to be distributed to retailers. So the company looks like it has already imported close to 2 million Switch 2 consoles into the US I've been told that many of them are sitting at a warehouse in Seattle. And so Nintendo could just sell those as is without tacking on a surcharge for tariffs. But then they risk alienating people two, three months from now if they had to jack up the price because of tariffs.

[Victoria Craig]

What has Nintendo said? Christopher?

[Christopher Mims]

So Nintendo declined to comment on the specifics of their pricing plans and the details of their manufacturing and shipping. They did say that the pre order date in the US for the Switch 2 continues to be delayed.

[Victoria Craig]

So I'll ask you the same question I've been asking almost everyone else when it comes to tariffs in tech. Can an American made Switch be possible for Nintendo?

[Christopher Mims]

It's such a great question. Everything depends on your time horizon, right? 10 years from now, could we have an entirely American made Switch or let's be honest here, North American made, right? Because it's probably gonna end up being made in Mexico. Yes. The problem is that in the meantime, companies might just give up on the US because you cannot rapidly switch this manufacturing to the United States.

[Victoria Craig]

So it comes down really to a whole complicated question about economics, which was a complicated question that you got to answer in your own household. How are your kids doing with the idea that maybe they will actually get the Switch two in the end?

[Christopher Mims]

They've been thrilled by the moment to moment updates. It's been a real up and down drama in our household, but they are very happy to hear that Nintendo has not moved the release date for the Switch and that they will probably be able to get it at the original $450 price point.

[Victoria Craig]

Cobble together those allowances.

[Christopher Mims]

Exactly.

[Victoria Craig]

That was WSJ tech columnist Christopher Mims. And that's it for Tech News Briefing. Today's show was produced by Julie Chang with Deputy editor Chris Insinsley. I'm Victoria Craig for the Wall Street Journal. We'll be back this afternoon with TNB Tech Minute. Thanks for listening.