Nintendo is moving production of its hit Nintendo Switch game console to Vietnam amid trade tensions between China and the US

nintendo switchAP/Koji Sasahara

Nintendo's moving production of the Nintendo Switch, at least partially, from China to Vietnam.

The move is a direct response from Nintendo - a major electronics maker - to the ongoing trade war between the United States and China.

A Nintendo spokesperson told Reuters that the production shift is scheduled to begin this summer, and is a measure of "diversifying risks" rather than skirting potential tariff increases related to the trade war.

Nintendo SwitchNintendo

Nintendo is the first of the three major game console makers - which includes Nintendo, Sony, and Microsoft - to move production out of China due to the potential for increased tariffs on goods produced in China.

In a surprise move, the three competitors collaborated on a joint letter to the United States government in late June.

"While we appreciate the Administration's efforts to protect US intellectual property and preserve US high-tech leadership," the letter says, "the disproportionate harm caused by these tariffs to US consumers and businesses will undermine - not advance - these goals."

Read more: THE TECH COLD WAR: Everything that's happened in the new China-US tech conflict involving Google, Huawei, Apple, and Trump

The tariffs imposed on goods imported from China were set to increase under a proposal from President Donald Trump. Under the Trump administration's proposed tariffs on $200 billion worth of Chinese goods, game-console makers would face a 25% tariff, an increase from the existing 10% rate.

trump xiChina's President Xi Jinping (L) and US President Donald Trump attend a welcome ceremony at the Great Hall of the People in Beijing on November 9, 2017.Nicolas Asfouri/AFP/Getty Images

Those increases were halted on June 29 following a meeting between Trump and Chinese president Xi Jinping on the sidelines of the G20 summit in Japan.

Still, amid uncertainty in relations between the US and China, many major tech companies - which rely on Chinese manufacturing - are either putting together plans or outright enacting plans to move production elsewhere.

Exclusive FREE Report: The Future of Payments by Business Insider Intelligence

{{}}
Add Comment()
Comments ()
X
Sort By:
Be the first one to comment.
We have sent you a verification email. This comment will be published once verification is done.