SOUND CHECK
TRADE TARIFF QUESTIONS LOOM?
( Matt, a photo of a large merchant ship unloading those big cartons at the docks would fit the vibe if this Sound Check).
It seems like you can’ t look at any source of news these days without seeing something about tariffs. This entire subject could be diminished or renewed with the next news cycle. You may come across this Sound Check a year from now and think“ What was the big deal back then?” as it may have resolved nicely.
But if you are a company that makes musical instruments or a pro audio or lighting company the current uncertainty can be unsettling. Even“ Made in America” companies are showing some angst. Why? Because just like Harley Davidson motorcycles who are proudly made here in the U. S., some of those parts inside it are actually made in China. Some guitar components used by U. S. builders( tuning machines, input jacks etc.) are made in China. Several iconic brands like Fender, C. F. Martin and Taylor guitars have plants in Mexico. One of my current favorite guitars – the L. R. Baggs AEG-1 acoustic / electric( which works so well for the worship platform) is made in Korea.
Our friends at NAMM are sending delegates to Washington D. C. to ask for an exemption on tonewood tariifs. Even though the guitar may be built entirely in America, the mahogany may come from Africa, the Spruce from Canada or Germany, the rosewood from … you get the picture. If the cost of tonewoods raises because of tariffs, then the cost to the consumer will feel it.
According to NAMM, 14 % of the average goods a normal American uses comes from China. But when you look at the percentage of goods that comes from China into the musical instrument and audio industry – it jumps up to an impressive 43 %! Do you see where the consternation comes from?
If you make a nice entry level guitar in China and you get hit with a 145 % import tariff, it
Photo by Dominik Lückmann on Unsplash
quenches your ability to stay competitive. When you list countries who are making guitars, it runs the course from the U. S., Japan, Korea, China and recently Indonesia and Vietnam have been contenders. Each of these foreign countries may end up with a different tariff percentage or no tariffs at all.
So for the meantime, things are a bit up in the air, questions loom. When you pick up your guitar the next time notice where it is made. Look and see what kind of woods were used to build your instrument. You might be more of a jet setter than you realize as your guitar is truly international.
Until next time …
Lord Bless You as You Follow Him, Bruce & Judy
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