What's happened
As of April 9, 2025, U.S. preorders for the Nintendo Switch 2 have been postponed due to tariffs. Framework has also halted sales of certain laptops, while Jaguar Land Rover and Stellantis pause shipments and production, respectively, in response to new tariffs affecting imports.
What's behind the headline?
Impact of Tariffs on Industry
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Nintendo's Strategy: Nintendo has delayed U.S. preorders for the Switch 2, citing the need to evaluate the tariffs' impact on pricing and market conditions. This decision reflects a broader trend among companies to reassess their operations in light of new trade policies.
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Framework's Sales Halt: Framework's temporary pause on specific laptop models highlights the direct financial implications of tariffs. The company stated, "At a 10 percent tariff, we would have to sell the lowest-end SKUs at a loss," indicating that the pricing structure is unsustainable under current conditions.
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Automotive Industry Response: Jaguar Land Rover and Stellantis have both taken significant actions, including pausing shipments and production, which could lead to job losses and supply chain disruptions. The automotive sector is particularly vulnerable due to the high costs associated with tariffs on imported vehicles.
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Future Outlook: As companies navigate these challenges, the long-term effects on pricing, consumer choice, and market dynamics remain uncertain. The ongoing evaluation of tariffs will likely lead to further adjustments in product availability and pricing strategies across multiple sectors.
What the papers say
According to Business Insider UK, Framework's decision to halt sales of certain laptop models is a direct response to the 32% reciprocal tariff imposed on imports from Taiwan. The company emphasized that it priced its laptops under the assumption of 0% tariffs, making current pricing untenable. Similarly, Nintendo's postponement of U.S. preorders for the Switch 2 reflects the uncertainty surrounding tariffs and their potential impact on consumer demand. Jaguar Land Rover's spokesperson noted that the U.S. is a crucial market, and the company is adjusting its operations to address the new trading terms. Meanwhile, Stellantis has temporarily laid off workers due to production pauses at its plants in Canada and Mexico, as reported by Business Insider UK.
How we got here
Recent tariffs imposed by the Trump administration have significantly affected various industries, particularly technology and automotive. These tariffs, which began on April 5, 2025, have led companies to reassess their pricing and sales strategies.
Go deeper
- What other companies are affected by the tariffs?
- How long are the production pauses expected to last?
- What are the potential long-term effects of these tariffs?
Common question
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How Are New Tariffs Affecting Tech and Auto Industries?
Recent tariffs imposed on imports have created significant ripples in the tech and automotive sectors. Companies are adjusting their strategies, leading to delays in product launches and changes in production schedules. This page explores the impact of these tariffs on consumers and businesses alike.
More on these topics
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Nintendo Co., Ltd. is a Japanese multinational consumer electronics and video game company headquartered in Kyoto. The company was founded in 1889 as Nintendo Karuta by craftsman Fusajiro Yamauchi and originally produced handmade hanafuda playing cards.
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
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Jaguar Land Rover Automotive PLC is the holding company of Jaguar Land Rover Limited, a British multinational automotive company with its headquarters in Whitley, Coventry, United Kingdom, and a subsidiary of Indian automotive company Tata Motors.