Tariffs and the impact on audio market

[cafe67]

Okay, now that a certain country has announced its tariffs policy - what the feeling on what is going to happen to price of hifi? 
 

I figure this going to hurt ( Australian) companies selling to said country , but will imports from said country  and other countries into Oz go up - so far it seems most others countries have not reciprocated with their own tariffs hikes? 
 

I thinking that due to a lot of components ( capacitors, IC’s, led displays etc)  in hifi gear being imported into any county are going to get more expensive to be brought into said country thus pushing the price of completed units up? 
 

deliberate vagueness to avoid this being a politics discussion 
 

 

Edited April 4 by cafe67

[Raffinator]

Hi,

 

I don't want this to skirt into our ban on politics, but what do people think will be the impact of US announced tariffs?

 

I'm referring to both subcomponents and finished goods. And is Australia in a good or bad position to be in?

 

My thoughts:

 

Backlash against US products made in red states is likely.

 

China looking for more export markets - will Wiim, Fiio, Gustard, Topping etc divert supply from US to other regions.

 

Ditto above for European and UK products.

 

Supply chain chaos to some degree.

[cazzesman]

This is not a political thread, it is purely a discussion being posed about the fallout of the World's finances as they relate to Audio pricing.

 

I presume components coming from the USA will go up in price based on the new Tariff and the Exchange rate.   Would you expect the cost of manufacturing in Europe (Germany, Denmark, Poland), Vietnam, China and Japan to raise prices (If their respective currencies are linked to the rise and fall of the USA $) in Australia?

 

Or will those 4 Areas look to find markets other than the USA, and become more competitive in Australia as a result?

 

Any thoughts?    

 

I would love to hear from manufacturers and retailers here on SN.

 

Regards Cazzesman 

[audiofeline]

I am fearful that the "tariff conflict" will cause a global economic recession, which won't just affect audio products, but as lifestyle products audio companies will be very vulnerable.  An no matter where products are manufactured, indirect price increases due to the tariffs (in different countries) will push up the price of all consumer goods.  And I see it for those in the US and those outside. 

[cafe67]

Australian dollars dropped below 60c USA the other day, that will cause some issues - *edit seems back up over 60c 

 

but I notice a lot of economists saying “ don’t panic” as after COVID-19 when things dropped but later rose back up. ? 

Edited April 8 by cafe67

[Vinylear]

The Australian dollar is currently at 61 cents to the US dollar. 

[Analogueage]

I think we will see a knock-on effect on prices i.e. increased prices across the board. The cynic in me says that some of these increases will occur because an excuse is now available for prices to rise regardless!

[StereoNET]

30 minutes ago, Analogueage said:

I think we will see a knock-on effect on prices i.e. increased prices across the board. The cynic in me says that some of these increases will occur because an excuse is now available for prices to rise regardless!

 

To be fair, with sales at an already slow pace in recent times, I genuinely do not believe that any distributor would look for a reason to put prices up if there wasn't a legitimate reason (which would only compound existing problems). Most would be sitting on stock already, so any dollar fluctations (and related price increases) would/should likely take a couple of months to filter through.

 

Honestly, price drops / specials / promotions would help stimulate sales right now which is what is needed.

[klm]

As an example of an increased tariff regime impacting a US based manufacturer, Devore Fidelity uses tweeters manufactured in China (additional 34%, possibly 84%) and base drivers from Norway (additional 16%), birch ply from Ukraine (additional 10%) mdf is manufactured  by small scale US companies about to be swamped by US speaker manufacturers not wanting to pay an additional 20% european tariff, caps and resistors out of europe, extra 20%, paints and lacquer finishes, China or Europe, additional, speaker terminals, China or Germany, external packaging material, who knows but likely China.

Let’s say his manufacture cost has increased overnight by 20% on average and with a country heading into recession and a definite world wide desire to avoid purchasing anything American, talk about a perfect storm for the American audio industry.

 

[LogicprObe]

 

Buy Australian!

 

You'll be right, mate.

[David A]

The Aussie dollar has tanked against the USD and EUR since Trump's tarriffs annoucement. But hopefully in the next 6 months the Aussie will recover most of it's lost ground..

 

 

 

Edited April 8 by David A

[evil c]

9 hours ago, LogicprObe said:

 

Buy Australian!

 

You'll be right, mate.

Couldn't agree more, as someone who has put his money where his mouth is and purchased many Aussie made amplifiers, locally made Helix One turntable and Hulgich speakers- l feel very proud whenever l look or listen to them. 

 

Now more than ever, it is a wise and supportive investment as they need us more than ever- and value for money cant be beaten!

[sloper]

l am involved and the transport and building industries for many years.

Since late last year the building industry has changed, extensions have fallen off new builds continue in the high end, but overall its really slow.

Tradies having 12 months work now gone to month to month.

Transport costs have blown out adding to costs all round, once again its slowing down.

 

The big build here in Vic is making it hard for trade employers to compete with wages.

 

Even noting its hard to now sell classic cars, prices have really slumped.

 

Saying all that l am retiring in 20 days on health grounds so l wont care.

Had to cash out my super last month and had all my ducks in a row.

 

Its the younger generation l feel for.

 

Tariffs will only make it harder and lead to the R word.

 

regards Bruce

Edited April 9 by sloper

[MrBurns84]

5 hours ago, evil c said:

Now more than ever, it is a wise and supportive investment as they need us more than ever- and value for money cant be beaten!

Couldnt agree anymore!  Time to buy local where you can + local product support which will be invaluable as always.

[proftournesol]

From a purely personal perspective, I've waited over 6 months for Soundsmith to re-tip my StrainGauge cartridge; during that time, the exchange rate drop has added several hundred dollars to the price. As Australia contributes very little to the global economy other than raw materials, our dollar is linked to the global trade of raw materials, so it is likely to stay low for some time. It's probably as much a factor as tariffs.

[betty boop]

I feel sorry for our North American friends ..I am part of overseas forums and they are in shock to see overnight anything made in China went up 104% ! 
 

Not sure what happens to even usa brands that need import components etc at higher cost then try export to us with our paltry and collapsing exchange …

 

carlton audio visual put some thoughts I see …they’ve ridden through 40 years of trading …so no doubt seen all sorts over that time 
 

https://www.carltonaudiovisual.com.au/blogs/news/tariffs-and-hi-fi

 

wish them and all traders, importers and local manufacturers …a safe journey through these times … cav above feel we are well placed ..may it be that way for all…

[Bunno77]

Seems the EU with the fear of being treated equally now want a zero for zero tariff deal. 

Seems to me like things are somewhat likely to get better. Real equality hey... 

[Kaynin]

I can’t believe CAV are still going strong with their opinions.  This caused them significant angst some time ago, IIRC.  

 

Well people always jump to conclusions.  This sort of significant change needs time to play out.  We won’t know the true lay of the land for our hobby for quite some time, in the meantime it’s all conjecture and opinion.  You soon find out who views the glass half empty, or half full.  I’m a half full kinda guy.  
 

For me, no need to change any behaviours, I’ve always supported Australian made in the first instance.  Currently looking at a certain brand of integrated amp made by hand on the Mornington Peninsula.  Can’t get more local than that.  Although I really should get out of Russian tubes, tariffs have killed the hobby.  Okay, that glass is kinda empty…

[cazzesman]

Https://en.wikipedia.org/wiki/Apple_supply_chain#:~:text=6 References-,Overview,but also Brazil%2C and India.

 

Just on a side note, check out the effect this will have on Apple Products pricing in the USA.

 

Way to test brand loyalty.

 

Yowza.

 

Regards Cazzesman

[cazzesman]

If you are in the zone to buy a new TV, maybe wait a month and Hisense will be about 1/4 the price, based on today's revelations.  

 

Chinese DAC's like Topping & SMSL will surely drop in price.   FiiO, HiFiMAN, Shanling, Cayin, Aune Audio, iBasso, Xiaomi, TCL & Xgimi...................................Where will their prices go?

 

https://allforturntables.com/2023/10/04/what-are-the-best-hifi-speakers-from-china/

 

Strange days, very strange.

 

Regards Cazzesman

Edited April 9 by cazzesman

[BLAH BLAH]

Can see the Chinese reaction to these tariffs as freedom to copy/clone/pirate all sort of goods coming from the major tariffiker!

*** for Tat...is opening a can (imported) of worms (local?!) who knows how it will end up...

 

[Kaynin]

1 minute ago, BLAH BLAH said:

Can see the Chinese reaction to these tariffs as freedom to copy/clone/pirate all sort of goods coming from the major tariffiker!

 

Eh?  They already do, and have been doing so for decades.

[BLAH BLAH]

12 hours ago, cazzesman said:

Https://en.wikipedia.org/wiki/Apple_supply_chain#:~:text=6 References-,Overview,but also Brazil%2C and India.

 

Just on a side note, check out the effect this will have on Apple Products pricing in the USA.

 

Way to test brand loyalty.

 

Yowza.

 

Regards Cazzesman

Yowza is right...

 

https://www.cbsnews.com/news/iphone-price-increase-china-tariffs/

[Chigurh]

If my Super balance keeps tanking the way it has done in the last month I won't be able to afford any new gear anyway. Bad timing for me. I planned on retiring next year. 

[Bronal]

I haven't seen any reference in the media to the Free Trade Agreement (FTA) that Australia is supposed to have with the US.  No doubt other countries have FTAs with the US as well.

 

Is the recent American action on tariffs in contravention of the FTA?  If so, why doesn't anyone say so?