Nintendo has reported a sharp increase in profits, with the Japanese gaming company benefiting from a significant refund linked to Donald Trump’s tariffs.
The company said profits jumped 53.5% to ¥147.4 billion (£694 million) during the three months to June, significantly exceeding analyst expectations of ¥77.8 billion.
Nintendo said sales of its Switch 2 console, launched last summer, continued to show strong momentum, while titles including Yoshi and the Mysterious Book, Star Fox, and Pokémon Pokopia delivered steady performance.
However, strong hardware and software demand was not enough to offset an overall decline compared with the same period last year. Revenue fell 10% to ¥517.8 billion.
Tariff Refund Supports Nintendo Earnings
Nintendo said its higher profits were partly driven by a refund on US tariffs after the US Supreme Court ruled in February that Donald Trump’s broad “liberation day” trade tariffs were illegal.
The Trump administration has refunded approximately $100 billion in tariffs collected before the ruling, representing around 60% of the total $165 billion gathered. Trump has continued to defend tariffs as a way to encourage domestic manufacturing, improve trade agreements and reduce the federal budget deficit.
Nintendo’s Tokyo-listed shares rose 2.87% on Thursday following the earnings announcement.
The company filed a lawsuit shortly after the Supreme Court decision, seeking a full refund from the US government covering tariff payments and related interest.
Although the refund now appears to have been received, Nintendo has not confirmed the exact amount. The company has also faced pressure over whether the savings will be passed on to customers.
Nintendo Faces Lawsuit Over Tariff Pricing
Last month, Nintendo faced a class action lawsuit from customers claiming the company increased prices due to tariffs but later benefited from government refunds.
Nintendo’s lawyers rejected the claims, describing the lawsuit as “meritless” and arguing that customers paid the agreed purchase price for the products they received.
New Tariffs Create Further Uncertainty
The company may continue facing challenges after Trump introduced a new round of tariffs affecting more than 80 countries, including Japan.
The latest measures could create additional pressure for companies such as Nintendo. However, a group of 25 US states has filed a lawsuit challenging the tariffs, potentially creating another opportunity for exporters to receive future refunds.
