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🇬🇧 United Kingdom /Economy & Trade

Nintendo profits surge 53% on Trump tariff refund

From The Guardian · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Nintendo reported a 53.5% profit surge to ¥147.4bn for the three months to June, significantly exceeding forecasts.
  • The profit increase was largely due to a refund on tariffs imposed by former US President Donald Trump, following a US Supreme Court ruling that deemed them illegal.
  • Despite the profit boost, overall sales revenue dropped by 10% compared to the previous year, and the company faces a class-action lawsuit over its pricing practices.

Nintendo's profits soared by 53.5% in the latest quarter, reaching ¥147.4bn (£694m) and far surpassing expert expectations. This significant jump in earnings was primarily driven by a refund of tariffs previously imposed by former US President Donald Trump.

Mamma mia!

— NintendoThe headline uses this exclamation to convey surprise or emphasis regarding the profit spike.

The Japanese game maker's profits were buoyed by the refund after the US Supreme Court declared Trump's trade levies illegal. The Trump administration has reportedly refunded approximately $100bn from these tariffs. Nintendo had filed a lawsuit seeking a full refund, including interest, to recoup its costs.

While the profit surge is substantial, overall sales revenue saw a 10% decline to ¥517.8bn compared to the same period last year. The company's popular Switch 2 console and games like Yoshi and the Mysterious Book, Star Fox, and Pokémon Pokopia maintained steady sales but could not offset the overall revenue drop.

Liberation Day

— Donald TrumpThis is the name given to the trade levies imposed by the Trump administration.

Adding to the company's challenges, Nintendo is facing a class-action lawsuit from customers who allege the firm increased prices due to tariffs and then benefited from the refunds without passing savings on. Nintendo's lawyers have dismissed the lawsuit as "meritless," asserting that customers paid the standard purchase price for the goods they received.

meritless

— Nintendo's lawyersDescribing the class-action lawsuit filed by customers.

Meanwhile, the former president recently imposed new tariffs on over 80 countries, including Japan, potentially creating further issues for companies like Nintendo. However, a coalition of 25 US states is suing the Trump administration over these levies, which could lead to more refunds for exporters.

the price customers paid represents the purchase price of the goods they wanted and received.

— Nintendo's lawyersDefending the company against claims of price gouging related to tariffs.
DistantNews Editorial

Originally published by The Guardian in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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