I realize, in the grand scheme of things, this is a relatively minor matter. But does anyone know how the impending imposition by Trump of a 25% tariff on Canadian goods, and the retaliatory tariffs Canada will impose, will affect the DIY audio market?
This being diy audio forum, i would avoid these political discussions.
I know its in 'Everything Else', so you can talk about weather...
Yes, it will affect everything. Including diy audio market.
I know its in 'Everything Else', so you can talk about weather...
Yes, it will affect everything. Including diy audio market.
I don't intend for this to be a political discussion, but a practical one. e.g. Hammond transformers are made in Canada. Will they now be 25% more expensive for US customers?
Is there a more appropriate forum for this discussion?
Is there a more appropriate forum for this discussion?
Just made a $500 order from Mouser. The tariff charge was $73. So, yeah, it hurts!
Dan
Dan
Could you explain further? Are they actually adding a tariff charge as an additional entry when you check out? Was it just applied to products from Canada, China or Mexico?
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These scenarios are hard to precisely predict in practice. Passing costs on to the customer is the easiest first step and a logical one when conditions are uncertain. Some companies also seem to use opportunities like this to increase prices more than they typically could.
In price sensitive/competitive markets, some tariffs will likely be absorbed by manufacturer price reductions. Tariffs may also be offset by governments (China did this through various mechanisms last time).
In Hammond's case, they may ultimately shift manufacturing to other countries or transship through them to avoid tariffs, since they seem to have manufacturing in multiple countries anyway. It will probably come down to how large the market is and how much trouble it's worth to get creative to avoid the tariff. If the tariff is seen as a short-term issue or the market is tiny it's less likely anyone is going to put in a bunch of work to avoid it.
If significant inventories have already been through customs and were sitting in warehouses in destination countries before the tariffs were levied, that could delay price impacts.
In price sensitive/competitive markets, some tariffs will likely be absorbed by manufacturer price reductions. Tariffs may also be offset by governments (China did this through various mechanisms last time).
In Hammond's case, they may ultimately shift manufacturing to other countries or transship through them to avoid tariffs, since they seem to have manufacturing in multiple countries anyway. It will probably come down to how large the market is and how much trouble it's worth to get creative to avoid the tariff. If the tariff is seen as a short-term issue or the market is tiny it's less likely anyone is going to put in a bunch of work to avoid it.
If significant inventories have already been through customs and were sitting in warehouses in destination countries before the tariffs were levied, that could delay price impacts.
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Yes, I had a lot of iron in the order, both Hammond and Triad. The tariff charge was a separate line item (as it is a tax upon declared value) that was "estimated" as I added items to the cart and then charged upon checkout.
A lot of people are going to be in for a shock when the seller doesn't collect the tariff tax and they will have to pay it upon delivery of the package.
Dan
A lot of people are going to be in for a shock when the seller doesn't collect the tariff tax and they will have to pay it upon delivery of the package.
Dan
The big thing nobody seems to be talking about (everyone is focused on the tariff tax) is the suspending a duty-free exemption for low-value shipments below $800. Thus, all of the items formerly shipped to giant warehouses in Canada and Mexico and then re-packaged to be shipped to the buyer, will now be subject to customs inspection and levying of the tariff tax. This is huge for drop shippers like Tumu and the "fast/cheap fashion" industry. It is, also, a trick widely utilized by Amazon and the like.
I just am going to sit back with my popcorn and see what happens. The lawyers are going to be all over this. I didn't even think we could levy tariff taxes against Canada and Mexico due to NAFTA. It's going to be quite a ride, for a bit!!
Dan
I just am going to sit back with my popcorn and see what happens. The lawyers are going to be all over this. I didn't even think we could levy tariff taxes against Canada and Mexico due to NAFTA. It's going to be quite a ride, for a bit!!
Dan
Trump has just announced that planned tariffs against Mexico have been put on pause after he spoke with President Sheinbaum. He's scheduled to speak with PM Trudeau later today.
Let's see what happens. (As I try not to burst at the seams from holding back my political comments. 😉 )
https://www.cnn.com/politics/live-n...dency-news-02-03-25#cm6p7x0t800163b6mzjl3zhgd
Let's see what happens. (As I try not to burst at the seams from holding back my political comments. 😉 )
https://www.cnn.com/politics/live-n...dency-news-02-03-25#cm6p7x0t800163b6mzjl3zhgd
It's not just tariffs, but wider world economic issues affect DIY parts prices, particularly in Oz where our dollar continues its slide down the S-bend. As the US$ gets stronger, our imports from there increase in price.
To trot out a well used example: when I bought our Dayton RS180Ps, they were A$64 each - now, $139 each. The local agent imports them from the US and the dollar has dropped from around 84c to just over 60c in that time; that, plus greatly increased shipping costs, has priced Dayton drivers out of my reach.
At about the same time, I bought some Peerless SDS 830657s for $37 - now $45, imported from China. Similar story with SB Acoustics, imported from Indonesia.
Geoff
To trot out a well used example: when I bought our Dayton RS180Ps, they were A$64 each - now, $139 each. The local agent imports them from the US and the dollar has dropped from around 84c to just over 60c in that time; that, plus greatly increased shipping costs, has priced Dayton drivers out of my reach.
At about the same time, I bought some Peerless SDS 830657s for $37 - now $45, imported from China. Similar story with SB Acoustics, imported from Indonesia.
Geoff
This is a hobby which is already marked up like batteries at a drug store without tariffs, I would stop doing it before I payed ANY tariff…guess it’s back to shell collecting
Digikey if I remember right will on the item page put a "Item may be subject to tariff" banner to give you a heads up. Then like as mouser is doing, on the checkout page you see the tariff as a separate charge.
As a side note, I thought the Ontario province took ALL US liquor off the shelves in retaliation. Targeted mainly at red Kentucky I imagine.
Applying tariffs to Mexico likely got rolled back due to the price increase that would be seen on foods. It will be hard to spin the pain felt be people who eat. He may threaten and roll back tariffs on Mexico so the major cost is uncertainty. Automakers will be hurt by the uncertainty for sure.
As far as audio goes tariffs mean my nearly completed man cave listening room will have to be a grow room instead.
As far as audio goes tariffs mean my nearly completed man cave listening room will have to be a grow room instead.
Back in time, a duty or Tariff was actually meant to protect local products and only charges against competing products. Since Canada does not manufacture semiconductors and many other times as we once did, there shouldn't be any tariff. I remember well way back when all semiconductors were duty-free. It became a money grab (A Canadian problem with our government).
So what will happen? Easy. Early application of the 25% which goes directly into distributor or retailers' pockets when they have existing, cleared stock (no bonded warehouse). In other words, we all get ripped off. LAter when product does enter the country (whichever country) the taxes will apply and it only hurts the local population.
It will not affect in any great way what is purchased. We may put off a project or repair, but we buy what we must anyway. There isn't any option.
End result, recession. Inflation. We do without as we no longer have discretionary income.
So what will happen? Easy. Early application of the 25% which goes directly into distributor or retailers' pockets when they have existing, cleared stock (no bonded warehouse). In other words, we all get ripped off. LAter when product does enter the country (whichever country) the taxes will apply and it only hurts the local population.
It will not affect in any great way what is purchased. We may put off a project or repair, but we buy what we must anyway. There isn't any option.
End result, recession. Inflation. We do without as we no longer have discretionary income.
There is an oportunity here for you. You buy transformers in canada, no tarifs, smuggle accross the border to us, and sell with profit. Just like rum runners in good old time.
Well, in states that have legalized cannabis, the wholesale prices have dropped dramatically and many home growers have shut down entirely. The market is full of lights and other necessary equipment. I'm currently lighting my shop with some very powerful LED fixtures.
Yes, along with several other provinces. The Ontario premier has also torn up a $100 milion contract with Elon Musk's satellite internet company, and announced the US companies will not be allowed to bid on gov't contracts. He's in the middle of an election campaign, so he has much to gain by being seen as standing up to Trump.
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