Trump Tariffs in effect: UPDATE 7 Trump wants everyone to know the China tariff is 245% (on certain goods) ¯\_(ツ)_/¯ (See staff communication)

[RennanNT]

I can’t stop thinking about dumb ways for Nintendo to blame a $600 switch on trump, like labeling the Chinese made ones the Trump Edition.

I Should probably stop reading this thread

I was going to say that Chinese Switch 2 would cost a lot more than $600, but then I noticed there's no "2" there and... damn.

 

[MegaXZero]

I don't think we can assume ~380k is the actual monthly Vietnamese production capacity. There are simply so many unknown factors.

For starters, the Switch 2 is rumoured (perhaps even proven through customs data?) to have been in production since around September/October 2024, so, technically, it's possible that the monthly shipments we're seeing now are playing catch-up and are larger than the actual monthly production.

Alternatively, and let me preface this by saying that I'm not particularly knowledgeable about transportation logistics, I wouldn't be surprised to learn that cost-effective shipments may not always involve the largest possible quantities due to competition with other customers limiting allocation – particularly in the current complex situation. In such a scenario, shipments would fall somewhat short of the production capacity. Nintendo could, however, resort to alternative, less cost-effective shipment channels in the coming weeks if tariff-gate requires it, as they did before during the peak of COVID.

Production would also ramp up as time went on though. So it’s anyone’s guess what the true capacity is. We just know from Bloomberg it’s sizable enough to be the majority for the US IIRC.

 

[Aostia82]

I don't think we can assume ~380k is the actual monthly Vietnamese production capacity. There are simply so many unknown factors.

For starters, the Switch 2 is rumoured (perhaps even proven through customs data?) to have been in production since around September/October 2024, so, technically, it's possible that the monthly shipments we're seeing now are playing catch-up and are larger than the actual monthly production.

Alternatively, and let me preface this by saying that I'm not particularly knowledgeable about transportation logistics, I wouldn't be surprised to learn that cost-effective shipments may not always involve the largest possible quantities due to competition with other customers limiting allocation – particularly in the current complex situation. In such a scenario, shipments would fall somewhat short of the production capacity. Nintendo could, however, resort to alternative, less cost-effective shipment channels in the coming weeks if tariff-gate requires it, as they did before during the peak of COVID.

you are right, but having two heavily rumored/factually reported months with the same shipping qty (around 380k units per month) is suspicious of their actual capacity to SHIP that qty from now on

it's true that production started earlier, but usually mass production tend to increase its weekly capacity the more the line is going into full capacity and having February with the very same amount of January could point to that qty being their monthly-goal specifically because once peaked, full capacity continues for awhile

 

[Arynio]

Production would also ramp up as time went on though. So it’s anyone’s guess what the true capacity is. We just know from Bloomberg it’s sizable enough to be the majority for the US IIRC.

you are right, but having two heavily rumored/factually reported months with the same shipping qty (around 380k units per month) is suspicious of their actual capacity to SHIP that qty from now on

it's true that production started earlier, but usually mass production tend to increase its weekly capacity the more the line is going into full capacity and having February with the very same amount of January could point to that qty being their monthly-goal specifically because once peaked, full capacity continues for awhile

Exactly, increasing production capacity is yet another factor that smudges any clear-cut deductions. But it seems like the number of units coming from Vietnam is at least decent.

 

[SquidEnthusiast]

I imagine if fhs Vietname/Cambodia factories do indeed become the "US" factories that arrangements to increase production rates from those places are going to be a top priority. And even if the situation stabilizes and the need isn't as pressing hey you still have more Switch 2s coming down the pipe than before so it's not a huge risk.

 

[Vena]

So what you're saying is we'll live in a world without a singular superpower? You'll have trouble convincing me that's a bad thing. But you'll forgive me for thinking that the rest of the world will survive the fall of the current superpower, we've managed to survive events like this at least 4 times over as a species now. It's especially helpful that the US is giving the rest of the world the signal to ostracize them a bit to mitigate any damage from that interconnectivity you mentioned.

We have not had a singular global superpower for over a decade, probably approaching two. The whole notion of global superpowers in general has been in a wane phase for a while, both China and the USA have struggled with exporting their control in various ways. US got bogged down in disastrous wars, while China's Belt and Road hasn't really produced the intended purpose. In general though there was at least trade alliances and such maintain a general world order. There also isn't much of an appetite for Bush-era "Murica Freedom Seeds" and China's got a whole bag of problems from raising a generation of Wolf Warrior Diplomacy.

But the world trade cannot have a major consumer, exporter, and importer collapse. No more than it could handle China collapsing due to a population collapse. The US is the largest economy in the world, California alone is like third. It has its fingers in everything and gives and takes from all the pots.

These are monolithic entities in the global market and there is no insulating yourself from either. Making yourself disconnected from the US/China would take decades of work and a completely reshaping of any economy that has the US/China as a major trade partner (which is most of them), effectively becoming isolationist and somehow hoping you can be self-sufficient. The current reshuffling is a surface level shift, and much of it is just political grandstanding.

Trade is one of the most integral elements of modern civilization and we are entirely plugged into each other. That is what makes these crazy movements so dangerous for everyone because no one wins if things get really bad.

 

[Icepick1878]

According to the Reuters report, Vietnam is hoping to get the 46 percent tariff “reduced to a range of 22 percent to 28 percent, if not lower.”

If that’s the long-term deal it would still be pretty bad.

Vietnam Pledges to Crack Down on Illicit Transshipment of Chinese Goods: Report

The Trump administration claims that Vietnam’s lopsided trade surplus with the U.S. has been inflated by fraudulently rerouted goods from China.

thediplomat.com

 

[Danny]

If that’s the long-term deal it would still be pretty bad.

Vietnam Pledges to Crack Down on Illicit Transshipment of Chinese Goods: Report

The Trump administration claims that Vietnam’s lopsided trade surplus with the U.S. has been inflated by fraudulently rerouted goods from China.

thediplomat.com

To be fair, they seem to have a realistic view of Trump, would probably be too optimistic if they thought they could get him to remove all tariffs on them. But yeah those kind of permanent tariffs would force Nintendo to hike the price of Switch 2 in the US.

 

[K samedi]

I've never thought of this type of scenario but congratulations to Furukawa and the Nintendo management to have this kind of foresight and ship from Vietnam. They probably accounted for tarrifs too when determining the price so if Vietnam can make a good deal I dont think Nintendo will raise the price.

 

[Shezard]

Nintendo could also try to flood neighbor markets with chinese units and let the market "regulate" itself. Probably a lot of scalpers there willing to take the risk of crossing the border unnoticed or similar actions. Custom agents do no control 100% of people, probably not even 10%, right?

 

[salesguy]

We have not had a singular global superpower for over a decade, probably approaching two. The whole notion of global superpowers in general has been in a wane phase for a while, both China and the USA have struggled with exporting their control in various ways. US got bogged down in disastrous wars, while China's Belt and Road hasn't really produced the intended purpose. In general though there was at least trade alliances and such maintain a general world order. There also isn't much of an appetite for Bush-era "Murica Freedom Seeds" and China's got a whole bag of problems from raising a generation of Wolf Warrior Diplomacy.

But the world trade cannot have a major consumer, exporter, and importer collapse. No more than it could handle China collapsing due to a population collapse. The US is the largest economy in the world, California alone is like third. It has its fingers in everything and gives and takes from all the pots.

These are monolithic entities in the global market and there is no insulating yourself from either. Making yourself disconnected from the US/China would take decades of work and a completely reshaping of any economy that has the US/China as a major trade partner (which is most of them), effectively becoming isolationist and somehow hoping you can be self-sufficient. The current reshuffling is a surface level shift, and much of it is just political grandstanding.

Trade is one of the most integral elements of modern civilization and we are entirely plugged into each other. That is what makes these crazy movements so dangerous for everyone because no one wins if things get really bad.

Yup. Reshoring to USA is entirely silly (besides the fact it would actually takes years to decades, even if you were serious about it) because, 330 million population cannot possibly supply all the stuff 330 million people needs, as well as drawing from billions can. so, many things would need to be cut for lack of time and resources, meaning lower standard of living.

the efficient part of trade in the ideal is different parts of the world are good at different things.

At the least to even begin to try you'd need massive automation/robots, which everybody supposedly hates those (like AI in gaming)

 

[SquidEnthusiast]

AI/automation is something the world is going to get drug kicking and screaming to barring some kind of Carrington event wiping out tech worldwide. The future is going to be about how humanity adapts to these things rather than trying to impotently resist them.

 

[derby_440]

Nintendo's Switch 2 and other gaming consoles made in China are likely to be hit by the trade war between the world's two biggest economies, despite the U.S. announcing over the weekend that smartphones, notebook computers and certain other tech products will be exempt from Donald Trump's "reciprocal" tariffs.

According to an internal assessment memo by a major Apple and Nintendo supplier seen by Nikkei Asia, game consoles are still subject to a 145% U.S. tariff on goods made in China, which means products like Nintendo's highly anticipated new console are in line for a massive hit.

The majority of Switch consoles are made in China, Nikkei Asia has learned, with a relatively small proportion made in Vietnam. Nintendo already delayed pre-orders for the Switch 2 in the U.S. as it gauged the impact of the "reciprocal" tariffs, Nikkei first reported. Many of Sony's PlayStation 5 consoles are made in China, as well.

China-made Nintendo Switch 2 in line for 145% tariff hit, supplier warns

U.S. exempts smartphones, laptops but not game consoles and smart speakers

asia.nikkei.com

Only small % of Swtich 2 are made in Vietnam, not enough to cover USA.

 

[Aostia82]

Nintendo's Switch 2 and other gaming consoles made in China are likely to be hit by the trade war between the world's two biggest economies, despite the U.S. announcing over the weekend that smartphones, notebook computers and certain other tech products will be exempt from Donald Trump's "reciprocal" tariffs.

According to an internal assessment memo by a major Apple and Nintendo supplier seen by Nikkei Asia, game consoles are still subject to a 145% U.S. tariff on goods made in China, which means products like Nintendo's highly anticipated new console are in line for a massive hit.

The majority of Switch consoles are made in China, Nikkei Asia has learned, with a relatively small proportion made in Vietnam. Nintendo already delayed pre-orders for the Switch 2 in the U.S. as it gauged the impact of the "reciprocal" tariffs, Nikkei first reported. Many of Sony's PlayStation 5 consoles are made in China, as well.

China-made Nintendo Switch 2 in line for 145% tariff hit, supplier warns

U.S. exempts smartphones, laptops but not game consoles and smart speakers

asia.nikkei.com

Only small % of Swtich 2 are made in Vietnam, not enough to cover USA.

this hs already been discussed and "partially debunked"
we know Chinese consoles ARE subject to 145% tariffs
we know also that Vietnam and Cambodia produced Switch 2 are going to be shipped to the US: will they be enough? we don't know yet, due to uncretain US demand, but

- they moved production in Vietnam at the end of last year
- they already shipped 380k pcs to the US (from Vietnam, from what we know; there could also be Cambodian units somewhere) in January
- It seems they shipped an equivalent volume in February
- even if the first 2 shipments have been due to more than 4-weeks of production capacity, production capacity tend to upscale and increase the more you produce

so basically they could have done the right move, with the Vietnam-based production aiming at the US market, with more than 1.1mil shipped on time for the US launch, and continuos production dedicated for that market

so I think they wont move the launch date nor increase the price, if this move will pay off

 

[derby_440]

this hs already been discussed and "partially debunked"
we know Chinese consoles ARE subject to 145% tariffs
we know also that Vietnam and Cambodia produced Switch 2 are going to be shipped to the US: will they be enough? we don't know yet, due to uncretain US demand, but

- they moved production in Vietnam at the end of last year
- they already shipped 380k pcs to the US (from Vietnam, from what we know; there could also be Cambodian units somewhere) in January
- It seems they shipped an equivalent volume in February
- even if the first 2 shipments have been due to more than 4-weeks of production capacity, production capacity tend to upscale and increase the more you produce

so basically they could have done the right move, with the Vietnam-based production aiming at the US market, with more than 1.1mil shipped on time for the US launch, and continuos production dedicated for that market

so I think they wont move the launch date nor increase the price, if this move will pay off

Debunked by who? So Nikki report of vast majority of Switch 2 being made in China false?

I guess we will find out if Trump doesnt back down on China tariff.

 

[Lelouch0612]

Debunked by who? So Nikki report of vast majority of Switch 2 being made in China false?

I guess we will find out if Trump doesnt back down on China tariff.

Yes the report is inaccurate.

It was debunked by both Nintendo and the custom manifests.

For Nintendo, they even mention in their website that the console is sourced from Vietnam.

Hardware - My Nintendo Store - Nintendo Official Site

Learn about gaming systems from Nintendo, including Nintendo Switch™. You can also shop for cases, accessories, controllers, and more.

www.nintendo.com

Only the AC adapter is made in China apparently.

 

[Steve]

Yes the report is inaccurate.

It was debunked by both Nintendo and the custom manifests.

For Nintendo, they even mention in their website that the console is sourced from Vietnam.

Hardware - My Nintendo Store - Nintendo Official Site

Learn about gaming systems from Nintendo, including Nintendo Switch™. You can also shop for cases, accessories, controllers, and more.

www.nintendo.com

Only the AC adapter is made in China apparently.

As of now Vietnamese manufactured NS2 can be that saving grace for Nintendo in the NA market, all things consider

Even if supply is lower, I presume it's better then having that Chinese tariffs

but lets see how things will change, considering one of issues with the current administration is uncertainty and how they'll do things on a whim

 

[Oregano]

It's true that China is the majority of Switch 2 production but most of the world can receive China supply without issue.

If ~400k Vietnamese consoles can be shipped to US a month that's possibly enough for normal demand but there would be pretty severe constraints during Holidays.

 

[Danny]

It seems the stock market believes Nintendo has their US production based in China, given that Nintendo stock continues to decline (More than Sony).

 

[Aostia82]

It's true that China is the majority of Switch 2 production but most of the world can receive China supply without issue.

If ~400k Vietnamese consoles can be shipped to US a month that's possibly enough for normal demand but there would be pretty severe constraints during Holidays.

it's true
but production ramp-up is

- possible
- feasible
- likely


if US tariff situation toward China wont' be solved
the main issue has already been faced and managed: open production lines elsewhere

once done, increasing the production capacity is WAY simpler

and I speak based on 17-years expertise of mass-production in China (and 5 years in Vietnam), even if not exactly on electronic devices (but some of the toys we prodcuce have electronic components)

 

[Kenka]

Yes the report is inaccurate.

It was debunked by both Nintendo and the custom manifests.

For Nintendo, they even mention in their website that the console is sourced from Vietnam.

Hardware - My Nintendo Store - Nintendo Official Site

Learn about gaming systems from Nintendo, including Nintendo Switch™. You can also shop for cases, accessories, controllers, and more.

www.nintendo.com

Only the AC adapter is made in China apparently.

Both these statements are not mutually exclusive. It can be true that the Switch 2 sold in the US are produced in Vietnam and their relative number is small compared to those shipped to the RotW.

It's a stretch but it is semi-plausible.

 

[Lelouch0612]

Both these statements are not mutually exclusive. It can be true that the Switch 2 sold in the US are produced in Vietnam and their relative number is small compared to those shipped to the RotW.

It's a stretch but it is semi-plausible.

Yeah but then the article's headline doesn't make much sense since it mentions tariffs heavily impacting the Switch 2.

 

[Aostia82]

Both these statements are not mutually exclusive. It can be true that the Switch 2 sold in the US are produced in Vietnam and their relative number is small compared to those shipped to the RotW.

It's a stretch but it is semi-plausible.

Oh, but I'm pretty sure the majority (50,1%+) of Switch 2 consoles are manufactured in China
but..

Yeah but then the article's headline doesn't make much sense since it mentions tariffs heavily impacting the Switch 2.

exactly: a more correct piece of news would be that

- videogame consoles are subject to 145% tariffs for China manufactured goods
- Nintendo Switch 2 console are produced in China, Vietnam and Cambodia
- Nintendo specifically prepared the "out-of-China" production to adjust possible "geopolitical issues"
- actual US consoles have been shipped from Vietnam

if Nintendo will be "forced-by-demand" to ship Switch 2 consoles to US from China, those units will be subject to the 145% tariffs

 

[Danny]

I mean the US tariffs on China is now 245 %, meaning the tariffs are now so high Nintendo will simply not ship any units from China to the US, you can't raise the price that high so that you can offset tariffs that are as high as 245 %. That means if Vietnamese production is too low, the main impact it will have is that US will go more understocked compared to Japan and Europe when it comes to Switch 2 consoles, there is no chance a single 245 % tariffed Chinese unit will ever be shipped to the US as long as those tariffs remain.

 

[Godzilla]

Nintendo can definitely move production to another country to help with US supply, 400k units a month sounds more than enough besides launch and holidays.

They could totally ramp up the production for the Holidays, and maybe find another country to help with holiday shipments. After that, 400k a month sounds definitely great.

 

[MegaXZero]

https://www.axios.com/2025/04/16/california-sue-trump-tariffs-newsom-china

We’ll see where this goes. Ultimately this will need the “moderate” conservative judges to swing toward California. Not the best odds but it is true the law doesn’t actually mention tariffs.

 

[SquidEnthusiast]

It seems the stock market believes Nintendo has their US production based in China, given that Nintendo stock continues to decline (More than Sony).

Now that makes no sense to me considering the actual reality of the situation. Sony and Microsoft have been caught far more flat footed than Nintendo in this situation.

 

[Godzilla]

The stock market is based on "feelings", so until Nintendo can actually show they can survive the initial demand and keep a steady flow of stock to the country without having to rely on China, they'll not believe it. Nintendo can totally say that they'll have no issues regarding stock due to Vietnamese production (and it shoudl help, a little) but it matters none if it's not a reality. On the contrary, Sony and Microsoft should not have stock issues to support the sytem for a long time, so AT THIS MOMENT, it should not affect their stock.

Kinda funny i say this when Tesla is all about lies and smoke (and to be fair, it's showing on their stock that Elon Musk was never close to anything he said in the past 10 years, like FSD, Robotaxis or Robots)

 

[Aostia82]

The stock market is based on "feelings", so until Nintendo can actually show they can survive the initial demand and keep a steady flow of stock to the country without having to rely on China, they'll not believe it. Nintendo can totally say that they'll have no issues regarding stock due to Vietnamese production (and it shoudl help, a little) but it matters none if it's not a reality. On the contrary, Sony and Microsoft should not have stock issues to support the sytem for a long time, so AT THIS MOMENT, it should not affect their stock.

but which is the logic, considering that two compenies manufacture ONLY in China, while the other officially opened production lines elsewhere?

 

[Godzilla]

but which is the logic, considering that two compenies manufacture ONLY in China, while the other officially opened production lines elsewhere?

I guess it comes down that Nintendo is releasing a new console while Sony and Microsoft have a few years of still current gen until this might bite them in the ass (and it will if US doesn't change their tariffs)

 

[Megiddo]

but which is the logic, considering that two compenies manufacture ONLY in China, while the other officially opened production lines elsewhere?

Well, do remember that the other two companies have many many many other sources of revenue besides selling video game hardware and software. It's not really about mitigation efforts, it's moreso all about exposure levels when it comes to the stock market, at least when we're this early into the tariff wars.

 

[Aostia82]

Well, do remember that the other two companies have many many many other sources of revenue besides selling video game hardware and software. It's not really about mitigation efforts, it's moreso all about exposure levels when it comes to the stock market, at least when we're this early into the tariff wars.

are these additional (and actual, mind you!) streams of revenue still subject/impacted by the Chinese tariffs?

 

[Kyougar]

it's true
but production ramp-up is

- possible
- feasible
- likely


if US tariff situation toward China wont' be solved
the main issue has already been faced and managed: open production lines elsewhere

once done, increasing the production capacity is WAY simpler

and I speak based on 17-years expertise of mass-production in China (and 5 years in Vietnam), even if not exactly on electronic devices (but some of the toys we prodcuce have electronic components)

Oh, but I'm pretty sure the majority (50,1%+) of Switch 2 consoles are manufactured in China
but..



exactly: a more correct piece of news would be that

- videogame consoles are subject to 145% tariffs for China manufactured goods
- Nintendo Switch 2 console are produced in China, Vietnam and Cambodia
- Nintendo specifically prepared the "out-of-China" production to adjust possible "geopolitical issues"
- actual US consoles have been shipped from Vietnam

if Nintendo will be "forced-by-demand" to ship Switch 2 consoles to US from China, those units will be subject to the 145% tariffs

Nintendo can definitely move production to another country to help with US supply, 400k units a month sounds more than enough besides launch and holidays.

They could totally ramp up the production for the Holidays, and maybe find another country to help with holiday shipments. After that, 400k a month sounds definitely great.

There is a reason that Nintendo didn't completely shift its production to Vietnam or Cambodia.
Production cost, time, and supplies.

If they further expand their production, the cost of the console will rise. Sure that is peanuts against the 145% tariffs on China, but it still makes the product more expensive.
They have 3 scenarios:
- don't expand in Vietnam (except the efficiency gains on the current production line) and don't send additional consoles from China, undersupplying the US
- don't expand in Vietnam (except the efficiency gains on the current production line) and price in, from the start, 10-20% additional tariffed consoles from China to get enough supply into the US.
- expand Vietnam production and price it into the US price, hidden as the normal Vietnam tariff. (would be difficult to raise the ROTW prices after already setting them)


They will have to gamble on the China tariff anyway. What if they decide to massively expand the Vietnam production, raising their console costs, and three months later the China tariff gets massively lowered or consoles get an exception?

 

[Aostia82]

There is a reason that Nintendo didn't completely shift its production to Vietnam or Cambodia.
Production cost, time, and supplies.

If they further expand their production, the cost of the console will rise. Sure that is peanuts against the 145% tariffs on China, but it still makes the product more expensive.
They have 3 scenarios:
- don't expand in Vietnam (except the efficiency gains on the current production line) and don't send additional consoles from China, undersupplying the US
- don't expand in Vietnam (except the efficiency gains on the current production line) and price in, from the start, 10-20% additional tariffed consoles from China to get enough supply into the US.
- expand Vietnam production and price it into the US price, hidden as the normal Vietnam tariff. (would be difficult to raise the ROTW prices after already setting them)


They will have to gamble on the China tariff anyway. What if they decide to massively expand the Vietnam production, raising their console costs, and three months later the China tariff gets massively lowered or consoles get an exception?

it could totally be
Vietnam on the other hand has become very competitive for the industrial production of many items, in the past 5 years
we, for our toys, sometimes get cheaper costs (production + transportations) from Vietnamn than China for example

 

[Welfare]

The China tariff is now 245% btw

China faces 245% Trump tariff

The White House said higher tariffs are a result of Chinese retaliation on trade.

www.newsweek.com

 

[Maabus1999]

The China tariff is now 245% btw

China faces 245% Trump tariff

The White House said higher tariffs are a result of Chinese retaliation on trade.

www.newsweek.com

Some confusion with this number right now, but honestly doesn't matter much between 145 and 245%. Supposedly the above 145% are by adding Biden-era tariffs which were sector specific on top, like the 100% EV one. Again, not sure it matters in the overall global trade arena much what the truth is, as 145% basically stops trade already.

 

[Welfare]

Some confusion with this number right now, but honestly doesn't matter much between 145 and 245%. Supposedly the above 145% are by adding Biden-era tariffs which were sector specific on top, like the 100% EV one. Again, not sure it matters in the overall global trade arena much what the truth is, as 145% basically stops trade already.

Yeah did some more research and if anything I need to tune this out lol the number is starting to get irrelevant.

 

[Joseki]

ONE BILLION PERCENT

HK stopped postal service the USA

Hongkong Post suspends the postal service for items containing goods to the United States

The Government of the United States (US) announced earlier that it would eliminate the duty-free de minimis treatment for postal items despatched from Hong Kong to the US and increase...

www.info.gov.hk

Regarding the surface mail, due to the longer shipping time, Hongkong Post will suspend the acceptance of surface postal items containing goods destined to the US with immediate effect (April 16). Where senders have posted surface postal items containing goods that have not yet been shipped to the US, Hongkong Post will contact the senders to arrange for return of items and postage refund starting from April 22.

 

[Kyougar]

Yeah, anything above 100% for everyday stuff is basically an import ban.
Maybe some luxury products could survive something like that, but not many.
And of course stuff that is critical for the nation that issues the tariff. But smuggling that stuff is quite "easier" at 245% (and not to forget that stuff that would "survive" a 245% tariff like rare earth, is banned by china anyway.

 

[Smelly]

That's really bad for the likes of Play-Asia.

 

[Djehuty]

That's really bad for the likes of Play-Asia.

thats really bad for everything on the planet

 

[fiendcode]

Debunked by who? So Nikki report of vast majority of Switch 2 being made in China false?

I guess we will find out if Trump doesnt back down on China tariff.

They also didn't say vast majority, just the majority. Which is true.