Tariffs and sky high audio prices.


With the Chinese tariffs taking hold on 100% of the imports and maybe even on Mexico forthcoming, the audio industry is going to see another big jump in their sky high prices. Anyone making purchases ASAP to get lower prices from existing inventory before post tariff products enter the marketplace?
tubelvr1

Showing 4 responses by photon46

@ghasley 
I thank you as well for your well reasoned and eloquent responses. A welcome relief from the tendency of most debate these days to devolve into real life versions of the movie "Idiocracy." It would be wonderful if all publicly debated disagreements were as logical, and level headed as yours. 
I would agree that this has been an enjoyable discussion to follow. We have multiple knowledgable people weighing in on the topic and the level of discourse has been generally respectful and civil. Quite interesting how intelligent people can be given the same set of facts and interpret them so differently depending on their worldview and personalities.

Regardless of how one views the points discussed so far, I wonder how or if the two personalities at the fore of the trade dispute will resolve the matter.  Mr. Xinping has amassed more personal power than any leader since the communist party turned away from Mao style "cult of personality" leadership. If things go south under his watch, it will be much harder for him to spread the collective blame around. Two monumental egos with distinctly different agendas and time frames in which to act.
@snapsc. Yes, most certainly KEF and other speaker manufactures would have to have either higher prices or lower profit margins if they moved production to higher labor cost locations. Look at the price difference between KEF's made in the UK Reference line and the rest of their products. No doubt Uk manufacturing costs are a part of that difference. 

Consumers want the highest quality and greatest product diversity for the lowest possible price. In our own little audio corner of the retail universe, witness the constant carping about "rip off" prices of boutique audio gear with low production volume and high labor costs. The market has responded by giving people what they want by chasing the lowest possible labor costs. 

Limitless pursuit of that principle has proven to be a bit of a Faustian bargain as far as the social implications though. In the Western world, we've got ever increasing product diversity and a downward trend in the number of middle income people to support the market. 

It will be interesting to see how the ripple effects from the use of tariffs plays out with people already stretched to the max and struggling to get by. We as a nation aren't accustomed to personal sacrifice in the interests of long term goals. 
"Now if someone is inciting or intending to incite violence or a call to action to harm or otherwise harass others, and he is certain that the Clintons, the Bushes and the Bilderbergers conspired and brainwashed his dog into convincing the Federal Reserve to cut rates right after he purchased his new monster truck with the confederate flag graphics on a 96 month 100% note and that the additional interest he has to pay could have gone toward his Marlboro and high fidelity fuse budget then that is not typically free speech. (by the way, it was me who brainwashed the dog)"

Ghasley, I almost choked laughing so hard at that one.