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Nintendo recoups $300M in tariff refunds as memory crunch intensifies
['Phil Neuffer', 'Antone Gonsalves', 'Lead Editor']
Supply Chain Dive - Latest News
The Switch 2 manufacturer said it bore the brunt of the International Emergency Economic Powers Act levies, even though it did raise prices on certain hardware last year due to unspecified “market conditions.”
The next month, as Customs and Border Protection got to work creating a means of delivering IEEPA tariff refunds to importers, two consumers filed a class-action lawsuit against Nintendo.
The case alleges the company raised prices due to the IEEPA levies and should therefore pass any recouped tariff costs back to customers.
Nintendo has rebuffed the suit and filed for its dismissal, arguing that consumers are not legally entitled to tariff refunds.
Despite recouping some tariff costs, Nintendo is still facing supply chain struggles, particularly with memory, leading it to further raise prices for consoles.