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.