How Tariff Chaos Is Throwing the Music Gear Industry IntoTurmoil

Published: Thursday, May 15, 2025 at 5:53 pm

Tariff Troubles: How Trade Wars are Hitting the Music Gear Industry

The music gear industry is facing a crescendo of challenges due to fluctuating U.S. tariffs, primarily impacting imports from China. Companies like Walrus Audio, a successful Oklahoma City-based manufacturer, are struggling to absorb soaring costs for essential components like surge protectors, which are only made in China. The Trump administration's tariff hikes, which at one point reached 145%, have forced manufacturers to consider raising prices, cutting products, or even laying off employees.

The uncertainty surrounding these tariffs is the biggest problem. Even with a recent trade deal lowering tariffs to 30%, the industry remains on edge. Small businesses, like EarthQuaker Devices, are particularly vulnerable, with their owner/CEO testifying before the Senate about the risk of bankruptcy. The issue is compounded by the fact that many crucial components, from circuit boards to fret wire, are sourced from China and other countries.

The impact extends beyond individual companies. The National Association of Music Merchandisers (NAMM) warns of potential devastation for both manufacturers and musicians. While the Trump administration has suggested that companies should simply manufacture their products in the U.S., industry experts like Josh Scott of JHS Pedals point out the impracticality of this, given the global supply chain.

The effects are already being felt. Companies are seeing costs rise, forcing them to discontinue products or absorb losses. Some are preparing for the worst by stockpiling inventory, while others are bracing for a nationwide shortage. The used gear market is also feeling the pressure, with prices potentially rising as new gear becomes more expensive.

BNN's Perspective: The situation highlights the complex and often unintended consequences of trade wars. While the goal of protecting American businesses is understandable, the reality is that many industries are deeply intertwined with global supply chains. The constant flux of tariffs creates instability, making it difficult for businesses to plan and invest, ultimately harming both manufacturers and consumers. A more predictable and collaborative approach to trade is needed to ensure the long-term health of the music gear industry and other sectors.

Keywords: music gear, tariffs, China, imports, Walrus Audio, EarthQuaker Devices, NAMM, supply chain, manufacturing, trade war, guitar pedals, musical instruments, prices, used gear, Trump administration, small businesses, industry impact, component costs, surge protectors, inventory

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