Tariffs and sky high audio prices.

Prediction: Once the tariffs are lifted, many of those prices won't come down after people are used to seeing and paying those higher prices. 

No doubt if the Chinese or Mexican tariffs last more than a couple months, there will be unintended consequences.

For those importing and selling audio products made in China or products made with parts from China, their cost will be going up.  Obviously, they will want to pass them along...but often times with higher prices come lower sales so there will also be pressure not to raise prices. If sales are low enough, there could actually be price reductions and possibly, in an almost worst case scenario, layoffs.

Often times, it is the biggest companies, those that rely on scale, that produce in China...so, not to pick on KEF, but are we as buyers currently getting a big savings because of production in China?  One might argue that we are not, or one might argue that KEF would have to have higher prices if their products were made in Europe or the U.S.

Where does that leave us?  My experience over the past few years has been that there are really good small American companies making great products here in the U.S. that might actually benefit from tariffs if it means that more people decide to give them a try. 


Tariffs are not a good thing overall, they are a tool to be used to try to get a more level playing field.  They will have unintended consequences.  Some will benefit, some will not.  In the end, between good small American companies and possibly a more robust preowned market, I suspect we don't really have that much to fret about...from an audio perspective that is.

Econ 101. Terrifs are no good for anyone or any country.
The consumer will get the costs passed on to them.
Like it or not,  it's a World economy. During the recession we all felt it. US,China, Europe, Japan. If the world economy is strong, we all benefit.
If you're such a great deal maker, then make a deal to solve the problem.  Then I don't have to worry about my audio equipment prices trippling because it's made of aluminum. 

Thankfully none of you guys are running the country. Electronics you know, politics you don't.

@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.