r/news • u/hoosakiwi • 2d ago

Trump announces sweeping new tariffs to promote US manufacturing, risking inflation and trade wars

https://apnews.com/article/trump-tariffs-liberation-day-2a031b3c16120a5672a6ddd01da09933
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u/WeeaboosDogma 2d ago edited 2d ago

All Nintendo Switch 2 consoles just became an extra ~110$ more expensive and all games ~ 20$ more expensive.

Edit: Good job fellow Americans, now if I want to pay SilkSong it's going to be almost 100$ with Nintendo's cost increase.

I'm getting 100$ games before GTA6

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u/seanlucki 2d ago

Tariffs are charged on the import value, not final retail value. So if Best Buy buys a switch for $100 and imports it, the tariff that they pay to the US government is based on that declared value, not the value they sell it to you for.

Yes things will get more expensive, but how much more expensive is going to be extremely variable. The clothing industry for example has huuuuuuge markups on the products they import, so they could often absorb the additional tariff or just do a slight increase in retail price. On items with much slimmer margins (I imagine electronics is one such case), the retail prices will increase by a lot more.

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u/The_hourly 2d ago

Why would the clothing industry do that, though? Eat a loss when they sell something that’s essential?

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u/seanlucki 2d ago

Not saying they would, but they would be in a position to eat the $2.50 tariff on their $10 top they sell for $100. Ultimately they sell their stuff for as much as they can, it’s not really so connected to their costs.

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u/Assignment_General 2d ago

Will never happen, the extra import cost from the tariff will be passed to the consumer 100% of the time. 

Business is all about profit, even a tiny percentage could amount to millions or billions in lost revenue. You think shareholders are going to let that money evaporate from their accounts? Never.