Tariff Panic At Axpona 25?


I noticed that there has been very little reporting on the business side of the audio industry's concerns regarding the recent tariffs. 

This morning Audioholics published the following insightful report on its website:

Global Tariff Fears Cause Panic in Audiophile Industry at AXPONA 2025

 

 

sargonicuse
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Aren't a lot of companies (like PS Audio, Dynaudio, etc.) having parts made in Asia? So, it's not an all or nothing issue but the tariffs could affect the availability or price of parts for non-Asia brands.

The math in the article is a bit sketchy.  I'm doing this from memory.  If a part of a piece say costs $20 and the tariff is added to that part at 100% increases the COGS (cost of goods sold) $20.  The article stated the $100 piece of finished equipment would go to $225 because of one part. 

Businesses have two decisions to make on their markup.  We can either make x% or $x per piece.  The said piece of equipment went from $50 to make to retail of $100 to now $70 to make.  They still make $50 the price is $120.  If they want to make 100% then the $70 piece to make now sells for $140.  $225 isn't in the equation.  Maybe that part was hyperbole, but come in man.  Now let's say 100% of the product and not just a part is made overseas.  Now the cost goes from $50 to $100.  Now they either sell for $150 or $200 depending on the business model.  If it was my business I would do the $150 until it goes back to normal and lower the price to $100 in the future.  There are different ways to slice and dice COGS and profit.

It’s not just one part that’s at issue.

Using Audio Research Corp as an example, just a guess 98% of the electronic components in their audio equipment is imported from China, Taiwan, or Vietnam.

Going from memory the face plates are imported. ARC is basically a design and assembly manufacturer. Made in the USA? Well? Engineered, and assembled in the USA.

You might ask why doesn’t ARC buy the electronic components from manufacturers here in the USA?  Who might that be?

@cleeds Agree 100%.

According to the link provided, Audioholics believes, "the best factories in the world for audiophile components are located in China and Vietnam." So as usual, I really don't care what they might think or feel about anything.