Akazawa strongly requests review of US tariffs

Akazawa strongly requests review of US tariffs

Nintendo's latest handheld gaming console, the Switch 2, was launched in the U.S. at its original price of $449, despite President Donald Trump's tariffs on several countries. This decision has sparked interest in the financial community, as it highlights the potential economic impact of tariffs on various industries.

The Switch 2, which features a 7.9-inch 1080p LCD display, a custom Nvidia chip, and redesigned Joy-Con 2 controllers, is expected to deliver sharper visuals and smoother gameplay. Notably, the console is backward compatible with most Nintendo Switch games, which could further boost its appeal to existing Switch owners.

However, the console's launch in the U.S. comes amidst a backdrop of increased tariffs. The U.S. has imposed tariffs on several countries, including China and Vietnam, where Nintendo's manufacturing plants are located. Despite these tariffs, Nintendo has managed to keep the price of the Switch 2 unchanged, which could indicate a strategic decision to avoid price hikes that might deter consumers.

The impact of tariffs on the tech industry is not limited to Nintendo. The European stock markets opened lower on Monday, with the regional Stoxx 600 index down 0.18%, as investors eyed the potential for escalating U.S.-EU tariffs. The Danish multinational wind energy developer, Ørsted, is particularly hard hit by the steel and aluminum tariffs, according to analysts. The company has already booked a loss of 1.2 billion Danish kroner ($183 million) in its first-quarter results due to the U.S. tariffs.

The higher tariffs are also a headwind for European steel companies that export to the U.S. However, some companies, like Sweden's SSAB, are benefiting from higher U.S. plate pricing. The steel producer's shares were 6.36% higher at 2 p.m. in London, as investors assessed the impact of the potential increase in U.S. steel tariffs to 50%.

Akazawa, a prominent financial analyst, has requested a review of U.S. tariffs, citing their potential negative impact on various industries. The analyst argues that while tariffs might protect domestic industries, they can also lead to increased costs for consumers and potentially stifle economic growth. The request comes at a time when the U.S. is considering further tariff actions, which could have significant implications for the global economy.

In conclusion, the launch of the Nintendo Switch 2 at its original price amidst U.S. tariffs highlights the complex interplay between trade policies and consumer markets. While the console's launch may not directly impact the financial markets, it serves as a reminder of the broader economic implications of tariffs. As the U.S. continues to reassess its trade policies, investors and financial professionals will be closely watching the potential impact on various industries.

References:
[1] https://www.business-standard.com/technology/gadgets/nintendo-switch-2-launched-at-original-price-despite-trump-tariffs-details-125060500637_1.html
[2] https://www.nbcwashington.com/news/business/money-report/europe-stock-markets-set-for-negative-start-to-week-after-trump-doubles-steel-tariffs/3926014/?os=io..PyTnQ7yC&ref=app