Nintendo lost 10% of its value due to tariffs and Trump's statements

Shares of Japanese technology giants Nintendo and Sony fell more than 10% on the Tokyo Stock Exchange as the situation in Japan's financial markets worsened after US President Donald Trump said he would impose tariffs on imports, Bloomberg reports.

Nintendo, which recently announced its next-generation console, the Switch 2, has been particularly hard hit . The company has delayed pre-orders in the U.S., as more than 40% of its holiday sales were in the North American market. The Switch is primarily manufactured in China and Vietnam , and imports from these countries can face tariffs totaling more than 46% . This makes Nintendo's products significantly less competitive.

President Trump has said he wants “balanced trade” and considers trade deficits “a waste.” The U.S. must either have a surplus or break even, he said. His stance has raised concerns that tariffs will remain in place for a long time unless the entire international trading system is overhauled.

Rakuten and SoftBank shares also fell more than 12% on the announcements. Export-oriented microelectronics companies such as Advantest and Disco also suffered, losing even more. This poses a risk of prolonged pressure on the Japanese stock market.