Trumps Tariffs Triggers Plunge in Japanese and Korean Gaming Stocks

Last week, U.S. President Donald Trump announced the implementation of tariffs on imported foreign goods. This development caused panic among shareholders, leading to a decline in the stock prices of numerous companies, including gaming giants like Sony and Nintendo.

According to the results of today’s trading on the Tokyo Stock Exchange, major Japanese gaming firms were significantly affected. The following changes were noted:

It’s Monday at 10 AM in Japan, and the reaction of Japanese gaming stocks to these absurd tariffs is as follows:

Nintendo -7.35%
Sony -10.16%
Bandai Namco -7.03%
Konami -3.93%
Sega -6.57%
Koei Tecmo -5.83%
Capcom -7.13%
Square Enix -5.23%

Mobile gaming companies fared even worse.

Earlier data from Serkan Toto on the Japanese stock market indicates that mobile companies are suffering even more.

Meanwhile, the stock prices of major South Korean gaming companies have also declined.

It’s worth noting that Japanese goods are subject to a 24% tariff, while Korean products face a 25% tariff. When looking at hardware manufacturers like Sony and Nintendo, one must also consider tariffs for China (34%, or up to 54% when accounting for older tariffs), Vietnam (46%), and other Asian countries, as consoles are assembled in these regions. Authorities in the affected countries are already preparing to negotiate with the U.S. to mitigate the negative impact of these tariffs.

Some companies had anticipated this outcome and took proactive measures in advance. For instance, Sony increased its inventory of PlayStation 5 consoles in the U.S. market. Now, these companies need to find ways to ramp up console production in Japan for sales in the U.S., given that tariffs for Japan are lower than those imposed on China.