Well at any rate, given the Treehouse stuff in the upcoming days, I can only speculate that Nintendo is going to be at least partly aware of the price backlash.
Do you guys think the recent tariffs are partly to blame?
I don't think so, IMO they were never a threat to begin with.
Nintendo is simply taking advantage of their dominance in the global market since Switch's launch, and they are comfortable with making these (outlandish) decisions because they have brand recognition and are part of the foundation of what we have today. They have normalized keeping the first party games as expensive as possible, while offering paltry discounts on rare occasions. They know they have audiences they can exploit.
1) They've drip-fed retro games via a subscription service, where in the past you could buy the games. Said games wouldn't even carry into the next rendition of VC, and the selection and output of games would pale in comparison in future hardware.
2) Their audiences (both children and adults) believe in the Nintendo brand, despite quality in their games demonstrably taking a nosedive (see Pokemon and the records it continues to make).
3) Nintendo has always been known as the cheaper, family friendly option. I won't make the argument that the same holds true here, but your average John and Jane who don't know a thing about video games will likely buy a Switch 2 without taking the price into consideration or chalk it up to inflation, they probably think the other two consoles are as expensive. I've learned to not underestimate the stupidity of consumers.
4) They have already eased their consumers into accepting game cartridges without the complete game on cart, and walling off additional retro consoles behind higher subscription tiers.
As much as I hate Nintendo, they are correct to assume they can do anything they want and the consumers will be there to lap it up. And not a single thing or person can stop them unless their pockets are hurt (3DS, Wii U). They can make or change the rules as they see fit, and so they're doing that here. The game industry will follow by example.