Tag: Tariffs

  • Nintendo Switch 2 Price May Hit $550 Due to New Tariffs

    Nintendo Switch 2 Price May Hit $550 Due to New Tariffs

    Key Takeaways

    1. Nintendo Switch 2 prices may rise by up to 20% due to new tariffs on imports from Vietnam.
    2. The U.S. government has doubled the tariff on Vietnamese imports from 10% to 20%, affecting pricing in a key market for Nintendo.
    3. The Switch 2 is set to launch at a higher price of $449, compared to the original Switch’s launch price of $299.
    4. Accessories for the Switch 2 are also experiencing price increases due to market shifts.
    5. Nintendo has not officially announced a price increase yet but is evaluating the impact of tariffs on their pricing strategy.


    Buyers interested in getting their hands on a Nintendo Switch 2 should hurry, as the price may rise by up to 20%. Nintendo is expected to transfer these costs to customers, according to analysts from Wedbush who are closely observing the industry.

    Tariff Concerns

    The U.S. government recently announced a 20% tariff on imports from Vietnam, which is double the previous 10% tariff that was in place when the Switch 2 first launched. This change could seriously affect pricing in what is by far Nintendo’s largest international market.

    Months ago, President Trump put a 46% tariff on all goods coming from Vietnam, but this was followed by a 90-day pause that reduced the rate back to 10%. This situation is particularly troubling for consumers, as the Nintendo Switch 2 is produced in both China and Vietnam, where tariffs are already quite high. The U.S. government is still working on trade agreements, with a self-imposed deadline of July 9 looming.

    Pricing and Launch Details

    The Switch 2 was announced on April 2, 2025, right around the time the tariff news broke. Due to the possible effects of this new policy, Nintendo chose to delay pre-orders in the U.S. The price for the Switch 2 was set at $449, significantly higher than the original Switch’s launch price of $299. Additionally, prices for accessories related to the Switch 2 have also risen due to “shifts in market conditions.”

    Industry experts believe that Nintendo may have no option but to raise the price of the Switch 2 and transfer the costs to consumers. Alicia Reese, an analyst at Wedbush, mentioned, “We expect Nintendo will pass almost all tariff-related expenses onto U.S. buyers, leading to a price hike of approximately 18–20%.”

    Future Price Predictions

    If the 20% tariff takes effect, Nintendo might increase the price of the Switch 2 from $449 to as much as $550. Even games and other accessories, which have already seen price increases, may also become pricier.

    At this point, Nintendo hasn’t made any formal announcement regarding a potential price increase in response to the tariffs on Vietnamese imports. They have adopted a wait-and-see approach, stating to Barrons that they are “evaluating the information and the effects of the tariffs,” but they don’t have any further updates to share right now.

    It’s possible that Nintendo is waiting to finalize terms with other countries involved in its production chain before making any price announcements. For the moment, U.S. customers can purchase a Switch 2 for $449, but that could quickly change in a marketplace where most economists believe that tariff effects will ultimately be felt by consumers.

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  • US Car Imports Plunge 72% Year-Over-Year Due to Trade Tariffs

    US Car Imports Plunge 72% Year-Over-Year Due to Trade Tariffs

    Key Takeaways

    1. Introduction of Tariffs: President Trump imposed a 25% tariff on new car imports and auto parts in April and May 2025 to boost US auto manufacturing.

    2. Significant Decline in Vehicle Imports: US vehicle imports dropped by 72.3% in May 2025 compared to May 2024, impacting the overall auto market.

    3. Impact on Used Car Prices: Increased demand for used cars, driven by higher new car prices and reduced imports, has led to a 4% rise in used car prices in 2025.

    4. Uncertainty in the Market: Many manufacturers may be delaying new car imports, hoping for changes in tariff policies, contributing to market unpredictability.

    5. Future Implications: The long-term effects of tariffs and potential changes to EV mandates could significantly alter the US car market and consumer behavior.


    In April, President Donald Trump implemented a 25% tariff on new car imports to rapidly revive auto manufacturing in the US. On May 3rd, another 25% tariff was placed on auto parts imports. These tariffs have significantly impacted US auto imports.

    Decline in Vehicle Imports

    As reported by Automotive News (via InsideEVs), US importers brought in 72.3% fewer vehicles in May 2025 compared to May 2024. This drastic drop could have severe consequences in a market where a majority of buyers prefer used vehicles.

    Effects on Used Car Prices

    While the tariffs from President Trump do not directly influence used cars, the overall auto market’s changes do affect used car prices, including electric vehicles (EVs). An increase in new car prices or a reduction in new car imports can push buyers towards the used car market. This heightened demand tends to drive prices higher.

    Rising Costs of Used Cars

    Data from Cox Automotive shows that used car prices in the US are currently 4% higher than in 2024. This increase could worsen due to the significant 72% drop in imports.

    InsideEVs speculates that such a substantial decline in auto imports may indicate that manufacturers are delaying new car imports into the US, hoping for relief from tariffs soon. President Trump has been unpredictable regarding these import tariffs, creating a lot of uncertainty.

    Future Market Implications

    It remains unclear how the car market and consumer habits will change as the effects of the tariffs become more apparent. If the auto import tariffs persist and the current US administration decides to scrap the EV mandate—suggested by the recent dispute between Elon Musk and President Trump—the US car market could face a major upheaval.

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  • Sony May Raise PS5 Prices in US Due to Tariffs and Manufacturing Shift

    Sony May Raise PS5 Prices in US Due to Tariffs and Manufacturing Shift

    Key Takeaways

    1. Sony may raise prices for the PS5 and other hardware/software in the US to offset expected tariff losses.
    2. The company anticipates a loss of around 100 billion yen (approximately $680 million) in the upcoming fiscal year.
    3. CEO Hiroki Totoki mentioned the possibility of relocating PS5 manufacturing to the US to avoid tariffs on imports.
    4. Despite challenges, Sony projects an 8% increase in operating income to 1.38 trillion yen (roughly $9.4 billion).
    5. PS5 shipments for FY24 are estimated at 18.5 million, showing a decline from 20.8 million units shipped in FY23.


    Sony, similar to many other firms, is bracing for a significant effect on its projections for the upcoming financial year due to the ongoing uncertainty surrounding tariffs. Reports suggest that the company might raise the prices for the PS5 and other hardware and software in the US to offset anticipated losses. There are also talks about relocating manufacturing to the US, as the consoles “can be produced locally.”

    Price Adjustments Ahead

    As stated in a press release from The Verge, Sony might transfer the costs of tariffs onto consumers, indicating that prices for hardware and software in the US could rise. The company expects a loss of around 100 billion yen (approximately $680 million) in the fiscal year. Although the PS5 wasn’t mentioned directly in discussions about price increases, it remains a possibility, especially since prices have already gone up in the UK, Europe, New Zealand, and Australia.

    Manufacturing Changes Considered

    Regarding production, CEO Hiroki Totoki has reportedly said that the PS5 “can be produced locally,” referring to the US as a way to dodge tariffs on imports from China and Vietnam. Totoki emphasized that this strategy is a practical approach worth considering for the future.

    Financial Outlook

    Despite facing tariffs, Sony projects its operating income to rise to 1.38 trillion yen (roughly $9.4 billion), representing an 8% increase from the previous year. Additionally, in its recent fiscal report, the company revealed that PS5 shipments reached 18.5 million for FY24, bringing the total to 77.8 million units worldwide as of March 31, 2025. In contrast, Sony shipped 20.8 million units in FY23, indicating a decline in sales for FY24 and hinting at a slowdown in momentum. However, Sony’s Game & Network Services (G&NS) segment has displayed strong results in software, services, and digital content.

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  • Apple to Raise Prices for New iPhone Lineup, Report Says

    Apple to Raise Prices for New iPhone Lineup, Report Says

    Key Takeaways

    1. Apple is considering raising prices for upcoming iPhone models, focusing on new features rather than tariffs as justification.
    2. A new tariff agreement between the US and China reduces tariffs to 10%, but a 20% tariff on China remains in place.
    3. Apple’s most profitable iPhone models, the Pro and Pro Max, will continue to be produced in China, affecting profit margins.
    4. Apple is exploring production in India but lacks the necessary infrastructure for mass iPhone manufacturing.
    5. Price increases may be linked to new camera technologies and larger batteries, with executives avoiding direct mentions of tariffs as the reason.


    Apple is said to be thinking about raising prices for its upcoming iPhone models, expected to launch later this year. Instead of pointing to the ongoing trade conflict between the US and China as the cause, the company plans to focus on new features or design changes as justification for the increases.

    Tariff Agreement

    On Monday, May 12th, 2025, the US and China came to an agreement to cut their reciprocal tariffs to 10%, down from an outrageous 125%. However, a different 20% tariff on China will still be in place. These new tariffs will stay in effect for 90 days, during which both countries aim to finalize a deal.

    Manufacturing Insights

    According to The Wall Street Journal, Apple’s most lucrative iPhone versions, the Pro and Pro Max, will still be produced in China. Insiders from the supply chain informed the publication that Apple may face reduced profit margins unless it opts to raise prices.

    Apple had been mulling over a significant overhaul of its supply chain, with a goal to produce 60 million iPhones every year in India. Yet, currently, the necessary infrastructure and technology aren’t sufficient for mass production.

    Price Justifications

    The sources from WSJ pointed out that new camera technologies and larger batteries might create challenges. The report also indicated that Apple executives are cautious about attributing the price increases to tariffs. Instead, they will likely frame the hike as a result of new features or design improvements in the soon-to-be-released iPhones.

    Apple’s CEO Tim Cook has mentioned in the past that the new tariffs could lead to an extra $900 million in costs for the quarter. He also highlighted that major iPhone models sold outside the US would continue to be sourced from China.

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  • T-Mobile, Verizon, AT&T Warn of Possible Phone Price Increases

    T-Mobile, Verizon, AT&T Warn of Possible Phone Price Increases

    Key Takeaways

    1. Executives from Verizon, T-Mobile, and AT&T are worried about new tariffs on foreign products affecting smartphone prices.
    2. Current tariffs include a general 10% and a doubled rate for devices made in China, leading to expected price hikes for consumers.
    3. Verizon’s CEO indicated that the company will not absorb significant tariff increases, suggesting that prices will rise for customers.
    4. AT&T’s CEO mentioned the need for innovative ways to help customers handle the upcoming price increases due to tariffs.
    5. Apple, holding a major market share, is impacted by tariffs and is shifting production from China to India, which may take time and potentially raise prices further.


    The top executives of the three biggest cell phone providers in the US, which are Verizon, T-Mobile, and AT&T, have all expressed concerns about the impact of new tariffs on foreign products. They have made it clear that they cannot absorb any rises in phone prices that may come from these tariffs.

    Tariff Effects on Smartphones

    While smartphones and tablets are temporarily exempt from reciprocal tariffs, they are still subject to a general 10% tariff from the Trump administration, which doubles for devices manufactured in China. The major carriers are evaluating the situation, but their leaders have collectively indicated that any price hikes will be passed on to consumers.

    Verizon’s CEO, Hans Vestberg, stated, “if the tariff is going to be as high as they say on the handsets, we are not planning to cover that in our work” and “we will not cover any enormous increase on tariffs on handsets.” This suggests that Verizon is preparing for significant price adjustments.

    Price Increases Coming

    For example, a Verizon iPhone 16 Pro Max currently priced at $1,199 at Best Buy, before the carrier’s trade-in discount of up to $1,000, could rise to $1,439 if the existing tariffs are enforced. Many customers have been buying iPhones quickly, anticipating these increases, which might lead to a drop in demand later on. Even if Apple moves production of US-bound iPhones away from China to countries with lower tariffs, prices could still go up.

    AT&T’s John Stankey mentioned, “So I think that if ultimately, costs are passed to us from those that we buy handsets from, unfortunately, for the customer, we’re going to have to come up with some new ways for them to figure out how to digest that increase in pricing.” He highlighted that while the business model may not change drastically, they will find innovative methods to help customers manage these price increases.

    Apple and Market Implications

    Apple held a dominant position in the US smartphone market last year with a 49.9% share, followed by Samsung at 21.4% and Motorola at 9.4%. This means Apple could be more affected by the tariff increases than others. Reports suggest that Apple is planning to release cheaper iPhones in the spring, allowing its more expensive Pro line to launch in the fall, which could help smooth out consumer purchasing patterns.

    Additionally, Apple is shifting its US-bound iPhone production from China to India, but this transition may take time. The multibillion-dollar investment for US production that Apple announced will take even longer and could increase prices further. T-Mobile’s CEO has clearly stated that these cost increases “have to be borne by the customer.” He added, “I mean, our model isn’t prepared for something like that.”

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  • North America Sees Surge in Desktop and Laptop Sales Amid Tariffs

    North America Sees Surge in Desktop and Laptop Sales Amid Tariffs

    Key Takeaways

    1. High tariffs on imports from China, reaching a minimum of 145%, are causing consumers to stock up on electronic devices, potentially leading to higher prices and lower supplies.
    2. Major companies like Dell, HP, and Lenovo are postponing laptop shipments to the US due to tariff impacts, while recent data shows significant increases in sales of desktops and laptops in North America.
    3. The International Data Corporation (IDC) reported a 7.6% revenue increase in the personal computer market, with laptop sales up by 26.9% and desktop sales up by 35.3% in Q1 2025 compared to Q1 2024.
    4. Both businesses and consumers are motivated to upgrade IT systems ahead of the end of Microsoft’s security support for Windows 10 in October 2025, pushing upgrades for devices that cannot run Windows 11.
    5. Despite strong sales in the PC hardware market, consumer confidence is declining, and a contraction in the market is expected in the second half of 2025, with the US gaming sector experiencing revenue drops.


    With a lot of parts made in China, high tariffs are making people stock up on electronic devices. The minimum tariffs of 145% on imports from China could lower supplies and make prices go higher. Some companies, like Dell, HP, and Lenovo, have started to postpone shipping laptops to the US. Recent data from the International Data Corporation (IDC) shows big jumps in sales of desktops and laptops in North America.

    IDC’s Role in Market Monitoring

    The IDC keeps track of sales of personal computers, software, services, and network infrastructure items. In the first quarter of 2025, total revenue rose to $19.9 billion, which is a 7.6% increase from the same time in 2024. The biggest growth was seen in personal computers, which include laptops and ready-made desktops. Laptop sales surged by 26.9%, desktop sales went up by 35.3%, and workstation sales climbed by 49.3% compared to Q1 2024. The graph below seems to have a mistake, as the right column should read “2025Q1”.

    Corporate and Consumer Reactions

    Companies felt a strong need to upgrade their IT systems to lessen the impact of tariffs. However, even regular consumers have acted fast. Another reason is that Microsoft will stop providing security updates for Windows 10 PCs in October 2025. Those whose devices can’t run Windows 11 might have hastened their plans to upgrade.

    Consumer Spending Trends

    Recent consumer spending data from March shows significant increases in retail sales. Yet, consumer confidence has taken a hit, with little progress seen in the negotiations about tariffs between China and the US. The IDC’s report mentioned that “market contraction should be expected in the second half of 2025.” It’s hard to believe that shoppers will keep buying expensive laptops and desktops at the same pace.

    On the other hand, while the PC hardware market is thriving, the US gaming sector faced downturns in March. Circana reported a 6% drop in revenue from video game software, hardware, and accessories compared to March 2024. Consoles and gaming accessories took the biggest hits, suggesting that consumers might be focusing more on work than fun. Still, strong pre-order sales for the Nintendo Switch 2 could help boost revenue significantly.

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  • Trump Tariffs Affect Nintendo Switch 2 and PS5, Supplier Says

    Trump Tariffs Affect Nintendo Switch 2 and PS5, Supplier Says

    Key Takeaways

    1. Trump announced a 145% tariff on electronics from China, negatively impacting U.S. companies like Apple.
    2. Initial exemptions for certain tech items were quickly retracted, meaning higher import fees for Chinese-made electronics will continue.
    3. Game consoles, including the Nintendo Switch 2, will not be exempt from the new tariffs, leading to potential price increases.
    4. Most Switch 2 consoles are manufactured in China, making it difficult for companies to avoid the tariffs.
    5. Nintendo has paused pre-orders for the Switch 2 in the U.S. and Canada, leaving the future price uncertain amidst potential cost increases.


    Trump has decided to place a 145% tariff on electronics from China, which is a big setback for U.S. companies such as Apple.

    Initial Relief and Subsequent Changes

    Over the weekend, there was a moment of relief when the U.S. government mentioned that some tech items, including smartphones and laptops, would be exempt from the new tariffs. However, this relief was short-lived as Trump later clarified that this exemption wouldn’t apply. Instead, electronics produced in China will be assigned to a different tariff category (according to BBC). Consequently, Chinese-made electronics will still incur higher import fees.

    Impact on Game Consoles

    Even if the exemption for certain devices like smartphones and laptops is upheld, game consoles are reportedly not included in this exemption. Consoles such as the Nintendo Switch 2 will still be subjected to the hefty 145% tariff. Nikkei Asia has claimed to have obtained an internal memo from a key supplier for both Apple and Nintendo, indicating that game consoles will face the 145% tariff regardless of the circumstances. This implies that products like the Switch 2 could see a notable hike in prices within the U.S. market.

    Manufacturing Concerns

    Adding to the challenges, a majority of the Switch 2 consoles are made in China. Although a smaller portion is produced in Vietnam, it isn’t enough to completely bypass the tariff. Sony also depends heavily on Chinese production for a large part of its PlayStation 5 manufacturing.

    In light of this situation, Nintendo has decided to halt pre-orders for the Switch 2 in both the U.S. and Canada. The company had initially aimed to start orders on April 9, but those intentions are now on pause with no new timeline provided.

    The Switch 2 was unveiled with a price of $499, but it remains uncertain whether Nintendo will maintain that price should tariffs increase production and shipping expenses.

  • US Implements New Tariffs on Electronics to Support Domestic Production

    US Implements New Tariffs on Electronics to Support Domestic Production

    Key Takeaways

    1. The U.S. will implement separate tariffs on imports of smartphones, computers, and semiconductors to boost domestic manufacturing.
    2. A “special focus type of tariff” will now apply to previously exempt consumer electronics, impacting companies like Apple and Samsung.
    3. The policy change aims to address national security concerns and reduce reliance on Southeast Asian manufacturing.
    4. Experts warn that the cost of products like iPhones could increase significantly as production shifts to the U.S.
    5. The new tariffs may alter global trade relations and raise concerns about supply chain stability.


    The United States is getting ready to implement separate tariffs on imports of smartphones, computers, semiconductors, and similar components in the next one to two months, as stated by US Commerce Secretary Howard Lutnick. According to ABC News on April 13, 2025, this action indicates a strategic shift aimed at bolstering domestic manufacturing.

    New Tariff Details

    Consumer electronics imports will now be subject to a “special focus type of tariff.” “We need to have semiconductors, chips, and flat panels made in America. We can’t depend on Southeast Asia for everything that operates for us,” Lutnick explained. This announcement follows President Donald Trump’s decision from April 11 to exempt smartphones, laptops, and other electronics from reciprocal tariffs imposed on April 2, a day referred to as “Liberation Day.”

    Impact on Importers

    The US Customs and Border Protection notice, effective from April 5, included products such as hard drives and memory chips, providing relief to companies like Apple and Samsung. Lutnick later clarified that these products will now be included in a “special focus type of tariff” set to begin soon, even though they were previously exempt from reciprocal duties. To avoid the tariff deadline imposed by Trump, Apple moved its inventory from India and China to the US in the last week of March.

    National Security and Economic Concerns

    This policy change aims to tackle national security issues, with Lutnick declaring that discussions with other countries are off the table. “These are things that are national security that must be made in America,” he mentioned. Experts have warned that “Made in America” iPhones could potentially rise to $3,500, indicating possible cost increases as production is shifted. The Trump administration aims to protect consumers and assist US firms while promoting self-sufficiency, although the swift policy change raises concerns about the stability of supply chains.

    As these tariffs come into play, the emphasis on domestic chip and electronics production could significantly alter global trade relations.

  • US Freezes Tariff Hikes Except for China Facing 125% Increase

    US Freezes Tariff Hikes Except for China Facing 125% Increase

    Key Takeaways

    1. Apple is moving iPhones and other products to the US to stabilize retail prices amid new tariffs.
    2. The Trump administration has paused planned tariff increases for 90 days for countries not retaliating against US tariffs.
    3. China is not included in the tariff pause, with tariffs increasing from 104% to 125%.
    4. Over 75 countries have asked the US government to negotiate a solution regarding tariff increases.
    5. The stock market reacted positively, with the S&P 500 rising 9.5% and the Nasdaq Composite increasing 12.2%.


    Apple has recently moved a significant quantity of iPhones and various other items from its stock in India and China to the US. This action was taken to maintain the retail prices as stable as possible in light of the new tariffs placed on all imports to the US.

    Tariff Pause for 90 Days

    The Trump administration has put a stop to the planned tariff increases for 90 days concerning countries that have not retaliated against US tariffs. Therefore, these nations will face a universal US tariff of 10% until July. When asked about the reason for this delay, the president remarked: “People were jumping a little bit out of line. They were getting yippy.”

    Increased Tariffs on China

    However, as the title suggests, China is not included in this pause. The Trump administration has escalated the already high 104% tariff to a staggering 125%, marking the start of what is being called a new trade war between the two nations. The motive? In retaliation to the previously set 104% tariff on goods exported from China, Beijing imposed 84% tariffs on imports from the US. Following this, the Trump administration accused China of showing a “lack of respect” and increased the tariff to 125%, which took effect immediately.

    Negotiations and Market Impacts

    Over 75 countries have urged the US federal government to “negotiate a solution” since the Trump administration revealed its plans for tariff increases, as stated by the president. Ultimately, he decided to ease off, paving the way for three months of negotiations with multiple nations.

    Many of you might already know how these tariff changes impact the stock market. On Wall Street, the S&P 500 index surged by 9.5%, marking its largest single-day rise since 2008. The Nasdaq Composite also rose by 12.2%—its best performance since 2001.

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  • GPUs Exempt from New Tariffs, But 25% Aluminum Tariffs Remain

    GPUs Exempt from New Tariffs, But 25% Aluminum Tariffs Remain

    Key Takeaways

    1. President Trump’s administration implemented “reciprocal tariffs” affecting around 90 countries, raising concerns about GPU price increases.
    2. A federal order suggests that GPUs are unlikely to be impacted by these reciprocal tariffs.
    3. Graphics cards will still incur a 25% tariff related to aluminum imports from China and other nations.
    4. Important tariff codes for GPUs and related components are missing from the federal order’s list of affected products.
    5. Current tariffs on products from China to the US reach 104%, with China retaliating with 84% tariffs on American goods.


    President Trump’s administration has put in place what is being called “reciprocal tariffs” affecting around 90 countries, which has raised worries about the potential impact on GPU prices, already expected to rise. However, as per the federal order released on April 7, it appears that components like GPUs are unlikely to be influenced by these reciprocal tariffs. Nonetheless, graphics cards will still face a 25% tariff focused on aluminum for imports from China and other nations.

    Details on Tariff Codes

    The federal order enumerates all products and components impacted by the reciprocal tariffs with their HTSUS or Harmonized Tariff Schedule of the United States codes. According to Annex II, the order includes “Electronic integrated circuits: processors and controllers,” “Electronic integrated circuits: memories,” and “Parts of electronic integrated circuits and micro assemblies,” along with their respective HTSUS codes.

    Missing Codes

    However, the list does not mention codes for graphics cards or “Printed circuit assemblies for rendering images onto computer screens (graphics processing modules)” and “Parts and accessories of machines with heading 8471, whether or not including fan hubs or LEDs but not including other goods of heading 8541 or 8542).” These are classified under tariff codes 8473301180 and 8473305100, which PCMag points out are both absent from the Annex.

    This indicates that GPUs might be free from at least the reciprocal tariffs. Yet, since they’re categorized as aluminum-related products, they remain subject to the overarching 25% tariffs that were first imposed on imports. While this is the present scenario, there’s a chance for things to worsen as separate chip-focused tariffs may come into play. Currently, products coming from China to the US are facing a total tariff of 104%, while China has responded with retaliatory tariffs of 84% on all American goods.

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