@-Green-
Today is just the day the tariffs actually took effect. They took effect across the board. Trump’s little dog and pony show last week was just to announce them and show the numbers.
Also, I wonder if they'll raise the price in Canada and Mexico, as a lot of Americans could just cross the border and buy them there at much lower prices.
As the ancient Mexican saying goes, “Que la boca se te haga chicharrón”. Or in other words: please no.
90 day pause is fantastic. That'll give time to let these leaders cool off and perhaps find diplomatic solutions without acting rash.
Psalms 22:16 (1,000 yrs before Christ)
They pierced My hands and feet
Isaiah 53:5 (700 yrs before Christ)
He was pierced for our transgressions
Zachariah 12:10 (500 yrs before Christ)
They will look on Me whom they pierced
It seems like almost every country that got tariffed is trying to make negotiations, and all besides China have received a 90 day delay. Hopefully by then deals will be made, but it seems like Switch 2's launch should work almost as planned.
@PikminMarioKirby
75 countries reached out to negotiate from what I hear. That's good. Its my understanding the reason Vietnam was hit so hard was to prevent China skirting tariffs, as "made in Vietnam" is becoming "made in China" in all but name. But the fact they already dropped rates 14% in Vietnam is a sliver of hope that perhaps rates could drop further. If it gets down to 20-25% I think the likelihood of Nintendo taking the hit and absorbing the cost becomes far more likely.
Because regardless of what Doug Bowser says, I find it hard to believe they didn't bake in a potential 20% tariff at the minimum. I think he's just saving face in case they decide to raise prices
Because saying "ya we accounted for potential tariffs already but we're also raising price" wouldnt go over so well. Even if they only accounted for 20% and the rate is now higher than predicted, consumers aren't very well informed and their analytical thinking is typically skin deep. Expecting them to understand economics? The average American would rather take a $20 bill than an ounce of gold for goodness sakes.
I was fortunate enough to study macroeconomics. And even then there's soooo much I don't understand. Its a mix of mathematics, science and politics.
Psalms 22:16 (1,000 yrs before Christ)
They pierced My hands and feet
Isaiah 53:5 (700 yrs before Christ)
He was pierced for our transgressions
Zachariah 12:10 (500 yrs before Christ)
They will look on Me whom they pierced
@JaxonH That's actually crazy that that many countries are already ready to negotiate. I think that the price point of the console would've been $450 tariffs or no tariffs, the console is quite powerful for a handheld, and since it comes with $90 Joy-Con 2, $13 straps, $110 Dock, and the system itself with built in microphone and 256 GB storage, it makes sense to be pretty pricey. I'd say it more likely affected the game prices.
90 day pause is fantastic. That'll give time to let these leaders cool off and perhaps find diplomatic solutions without acting rash.
Things so bad that a 10% tax across everything with a timeout is seen as a massive win. Still an additional charge on imports, still doesn't remove the risk equation. Dude needs to just drop this show outright. Crazy stuff
I would also note, even though this part doesn't impact Nintendo, that this pause does nothing to countries like Australia. We were already being hit by the 10% floor. We have a free trade agreement with the US, so no tariffs either way, and (not that it means anything) the US has a trade surplus with us. By their own formula the US should be subsidising imports from Australia! Yet they're taxing them 10%.
So the idea that countries can find something to give the US for a deal is kinda laughable. In many cases there's nothing to give. There's no deal to be had here, there's no logic, there's no diplomatic solution. It's just some guy who found a hammer he likes and is using it on everything
Anyways, as I've said from the start here, dude will eventually fold. After a lot of damage has been done but none the less he'll fold. The best move is to just wait this out.... while companies find alternative markets and price in the increased risks
I think that the price point of the console would've been $450 tariffs or no tariffs
I would be more inclined to believe that if the Japanese-only version wasn't the equivalent of $340. Some of that difference is the normal complicatedness of currency and international trade, but the gap is definitely larger than expected if you don't assume they added a tariff charge.
@FishyS It might help if you look at the Japanese prices in Yen, because they're being asked to go from about ¥30,000 for a Switch to ¥50,000 for a Switch 2, which is a 60% rise and would give them just as severe sticker shock as the rest of us.
Obviously, in a global context they're still getting a far better deal, but I doubt that Nintendo could go much higher without alienating their core audience there, and Japan is not a market that they'd want to lose.
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Topic: Import tariffs
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