Nintendo Sues the U.S. Government Over "Unlawful" Tariffs, Demands Refund With Interest

Nintendo has taken the U.S. government to court. On March 6, Nintendo of America filed a lawsuit in the U.S. Court of International Trade, targeting tariffs it says were unlawfully imposed under President Donald Trump's executive orders. The company wants its money back, with interest.

Aftermath first broke the story, reporting that the complaint covers ten executive orders stretching back to February 1, 2025, when Trump began imposing tariffs on goods from Canada, Mexico, China, and beyond.

Nintendo's lawyers argue that since February 2025, Trump implemented "unlawful" executive orders "imposing tariffs on imports from a vast swath of countries." The company is asking the court to refund "with interest" every dollar it paid.

The whole mess centres on the International Emergency Economic Powers Act of 1977 (IEEPA), which Trump used as the legal basis to push through sweeping tariff orders. The Supreme Court disagreed with that approach. On February 20, the Supreme Court struck down the IEEPA-based tariffs, ruling that the act did not grant the president authority to impose them.

So Nintendo filed suit. And, honestly, fair enough.

Why Nintendo Didn't Just Wait

You might wonder why a company would bother suing separately after the Supreme Court already made its ruling. Nintendo argues a separate lawsuit is still needed because, without a court order in its own case, it is "not guaranteed the refund to which" it says it is entitled. The government conceded in other court documents that refunds are necessary, yet Nintendo's lawyers weren't willing to take that on faith.

More than a thousand other companies have already sued the U.S. government for refunds on the tariffs, including Costco and FedEx. According to Nintendo's complaint, these tariffs resulted in the collection of over $200 billion on imports in total.

Nintendo isn't alone, then. Not even close.

What This Cost Nintendo

Nintendo manufactures its consoles and accessories overseas, mostly in Vietnam and China. The timing of the tariffs was particularly bad for the company, which was gearing up to release the Nintendo Switch 2 when they were announced.

The tariff chaos hit the Switch 2 launch hard. Pre-orders were initially slated for April 9, but Nintendo delayed the date to assess the impact of President Donald Trump's tariffs. The Switch 2 launched at $449.99 in the U.S., the same price first announced on April 2, though accessories saw price adjustments.

Joy-Con 2 controllers went from $90 to $95 per pair ahead of the June 5 launch, and the Pro Controller rose from $79.99 to $84.99. By August 2025, Nintendo also raised prices across the original Switch family in the U.S., with the OLED model climbing from $349.99 to $399.99 and the standard Switch from $299.99 to $339.99, following a 20% tariff imposed on goods from Vietnam.

Consumers paid the price for all of that. Whether any of it gets reversed remains to be seen.

Where Things Stand Now

Judge Richard Eaton of the U.S. Court of International Trade ruled that companies which paid tariffs are entitled to refunds, but attorneys for U.S. Customs and Border Protection argued that it cannot process those refunds due to a lack of manpower and deficient technology to efficiently issue them.

The CBP has said a refund system would be ready within 45 days, though given the scale of over $200 billion collected, that timeline seems optimistic at best.

Trump, meanwhile, has vowed to impose new 15% tariffs under Section 122 of the Trade Act of 1974 following his Supreme Court defeat. Two dozen states filed suit over that measure as of March 6.

Nintendo's lawsuit sticks to the basic timeline of tariffs and requests a straightforward refund of duties paid. The company is far from the only major corporation impacted, and it may not be long before refund lawsuits become widespread across the industry.

Nintendo's lawyers aren't mincing words. "All tariffs collected under the IEEPA Duties must be refunded with interest" the lawsuit reads.

Whether U.S. Customs and Border Protection moves fast enough to honour that, or whether Nintendo needs further court orders to force the issue, is the next chapter in what has already been a long, expensive saga for everyone involved.