Shares of Super Mario maker Nintendo plunged the most in seven months as investors abandoned Japan’s outperforming video game stocks on worries that U.S. President Donald Trump’s tariffs will drive up console prices in the United States.
Nintendo sank 9.2% in Tokyo, its biggest intraday drop since the stock market rout on Aug. 5. The shares had traded at an all-time high last month and jumped 23% this year before Friday’s plunge.
Under Trump’s new levies, game consoles, including the upcoming Switch 2, "could have higher selling prices in the U.S. — the world’s biggest market for game consoles — due to heftier import costs, as most are either manufactured in China or rely on suppliers in the country for parts,” wrote Nathan Naidu, an analyst at Bloomberg Intelligence, in a note. Trump raised duties on Chinese imports to 20% from 10% on March 4.
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