From the Super Mario Wiki, the Mario encyclopedia
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The Snow Cloud is an item that appears in Mario Kart Arcade GP, Mario Kart Arcade GP 2 and Mario Kart Arcade GP DX. This is one of several Prize Items, which has to be won first before it can appear in a race.
The Snow Cloud locks onto another racer and freezes their kart's tires while snowing upon them. This makes the racer lose traction on the track and slows them down, making this item a slightly more severe version of the Rain Cloud.