It isn't. Trump thinks the foreign countries pay the tariff. It's the companies buying the foreign product. Tariff goes to the government (likely to pay for Cheetoman's golfing). Company either eats the costs (likely laying off people) or passes it on to the consumer. It's supposed to reduce foreign buying and increase US production. That works for some things but most items we have to get elsewhere. Cheetoman is insane.
They could raise the prices everywhere worldwide by a smaller amount rather than just raise American prices by like 20+%.
Companies aren't going to spend hundreds of millions or billions building factories in the US (especially when the parts they need to build the thing are imported still and tariffed) when the tariffs could be gone in 4 years or earlier.
Not wrong.So people who said the prices were high because the tariffs were pre-baked in were wrong?
I agree. But, if the US is expecting trade to be equal, that is unlikely to happen. So, it seems like an easier solution. Maybe assemble it in Mexico.
I don't think this is classical Trump Defense Syndrome. I think it's maybe possible that the current sitting president of the United States could have had a negative near term effect on the United States Economy.nintendo fanboyism + TDS
two of the most unstable groups of people meeting to form one super mega unstable being the likes of which we have never seen
You do realize that every single competitor for Nintendo also manufactures abroad and will increase prices?
Let's do some rough estimates. Nintendo can perhaps forgo $50 from their profits. So. 450 + est. 180 of additional tax- 50=580 USD.They can't be selling it for 830 right?
Imagine if the Switch 2 of all things ends up being the wake up call for the lower and middle class in America.
Exhibit A
Erm why would they do that.
Even if there were any, they would be a lot more expensive to produce than in Vietnam, unless you can find Americans willing to work for 2 bucks a hour. So the final effect is the same, 650 buck Switch 2.
He's crushing the economy so his rich billionaire friends can buy up the remains. He doesn't care about 99.99% of the American citizens.
Yep.
100% agree. This is maybe the wildest thing i have seen in my lifetime economically. That is factoring in 2008, and the dotcom rise and bust. This could reshape the world economically.
You realize if they build plants in America the price will be higher to produce. You think the average American is going to work for 5 dollars an hour or less to produce the switch let alone the parts that he is tariffng from other countries to make he product. Nintendo makes bigger profit margins due to cheaper labour.
its the classic Doomed joke about Nintendo.
I admit its a gamble but its a calculated risk. Better than doing nothing and just staying with status quo, which cause allot of job loses in USA, and be abuse by other tariffs of other countries.
I do think you are probably right. I don't have numbers in front of me. But, it feels like maybe Nintendo holds launch a bit longer, or maybe launches in Japan and China first. We will see though.
Of consoles, absolutely.
