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 What will tariff hikes do to the musical instrument building business?
Author: ruben 
Date:   2025-04-29 18:20

While totally refraing from discussing politics on this site, but taking an objective view of things, if there is tariff hike of 30 per cent on musical instruments produced in my country -France- and exported to the US, this would normally mean that Americans will have to pay 30 per cent more for the purchase of an instrument. The economic situation of Selmer and Lorée is already precarious. I'm not sure they could survive a considerable loss in US sales (Lorée exports 80 per cent of their oboes to the US). As for Chinese manufacturers, their prices would logically double.

rubengreenbergparisfrance@gmail.com


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 Re: What will tariff hikes do to the musical instrument building business?
Author: Hank Lehrer 
Date:   2025-04-29 19:59

Ruben,

The cost of the tariffs will be higher prices for the dealer and thus the customer unless Conn-Selmer wants to absorb. There will be no checks from China, France, etc. to the US Government as Mr. Trump has claimed.

IMHO This is collateral damage resulting from a poorly planned and executed
trade war. A flawed plan from the beginning.

Hank

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 Re: What will tariff hikes do to the musical instrument building business?
Author: David H. Kinder 
Date:   2025-04-29 20:12

The theory is that tariffs will be added to the cost of the product, thereby will slow demand for goods imported and encourage manufacturing in the U.S.

I only say theory because there are some people who will pay any price for something if they want it bad enough.

Are there enough of those people? Maybe not.

Most student-level instruments are made in China and the U.S. In the instrument world, we are certainly conditioned on what to believe based on manufacturing origin - whether it's true or not.

Clarinets have been increasing in price for a long time. The highest priced one I can think of is the Backun Carbon Fiber for about $15,000 each. Competition amongst high school and college students continue to help drive prices higher to have 'the best one' and any additional edge they perceive these instruments to have.

Kind of like the cost of college keeps increasing due to academic overhead.

I think used instruments should be a far better bargain, but those may increase over time as well? Similarly to the used car market? Not sure if a $250 used clarinet will suddenly jump up in price to $500 though.

The private equity firm that bought Buffet Crampon really picked a bad time in terms of the market in the United States. However, they are the #1 brand for clarinets... so who knows?

Ridenour AureA Bb clarinet
Vandoren BD5 HD 13-series mouthpiece
Vandoren Optimum Silver ligature (plate 1)
Vandoren #4 Blue-box reeds

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 Re: What will tariff hikes do to the musical instrument building business?
Author: Chris P 
Date:   2025-04-29 21:16

Would a brand new clarinet bought by someone visiting the UK or Europe and sold via a private seller still be considered a new clarinet or would it effectively be a used clarinet? I'm sure there are some loopholes waiting to be exploited to bypass the tariffs.

Former oboe finisher
Howarth of London
1998 - 2010

The opinions I express are my own.

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 Re: What will tariff hikes do to the musical instrument building business?
Author: Hunter_100 
Date:   2025-04-29 21:50

I don't think US import tarriffs and customs duties differentiate between new and used. It is just based in value of the imported goods.

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 Re: What will tariff hikes do to the musical instrument building business?
Author: Hunter_100 
Date:   2025-04-29 21:58

also when it comes to new instruments the tax is applied to the value of the instrument when it crosses the border, which is not necessarily the final sale price. I have heard that often companies must sell product at 3X their own purchase cost to break even. Following that example, a $3000 clarinet sold in the US might only cost the distributor $1000 to import it, and the tarrif only applies to the $1000 amount. So a 30% tariff may only increase the final cost by around $300 on a $3000 instrument.

Where this will really be felt is on low profit margin goods since there is little price hike after import to absorb the tarriff and all the cost must be passed to the consumer.

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 Re: What will tariff hikes do to the musical instrument building business?
Author: SecondTry 
Date:   2025-04-29 22:27

You asked for an apolitical answer.

Who is charged a tax (and a tariff is no different than a tax except it is charged to a foreign entity rather than someone making a purchase domestically) and who pays it can vary based upon something economists call the price elasticity of a product, which is how sensitive its demand is to price changes.

In reality, often both parties to a transaction pay a portion of the tax/tariff.

For products that have easy substitutes, and where their demand is flexible, more of that tax is paid by the seller. Where a product is mission critical, and has few things that can replace it, the seller can pass along a large part, if not all of its tax/tariff to the buyer.

Here's another apolitical fact. The more goods are exchanged of each party's free will the happier we are as a society. This is known as the gains from trade, and it stems from the fact that we value things differently: if we didn't we wouldn't trade. That can of Coke you got charge $1 for, you bought because you perceived its value as being greater than $1, just as sure as its seller considered it worth less than $1 in value: everyone benefits and benefits increase the more such transactions occur.

Taxes or tariffs reduce the amount that can be traded, a bad thing, and are only justified when the taxes collected fund things that are considered more worthy (which can be subjective) than the loss in trade, be it social services, less people smoking cigarettes, road repairs, etc.

Economists the world over tend to agree that there are a few areas, for limited times, in which tariffs can be beneficial. Otherwise, they tend to at best, protect niche industries at detriment to the masses.

Taxes and tariffs reveal who truly has power in an economic situation.



Post Edited (2025-04-30 00:20)

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 Re: What will tariff hikes do to the musical instrument building business?
Author: Liquorice 
Date:   2025-04-29 23:04

Recent post (2 weeks ago) from an small woodwind shop owner in the USA:

"As a business owner, I just got hit with my first tariff charge on an imported instrument from the EU. While I thought it would be 10%, it was actually 4.9% (normal import duty) and then an additional 10% on top of that. A single clarinet just got increased in price by $500.
In order to receive the instrument from the shipper I had to pay this or they would not deliver the instrument . For small businesses, this will quickly become unsustainable as the retailers have to pay the costs up front and then make decisions on what percentage is passed on to customers."

Besides this, I believe that the dollar has also dropped against the Euro?

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 Re: What will tariff hikes do to the musical instrument building business?
Author: ruben 
Date:   2025-04-29 23:55

Chris P: the UK is not supposed to be as badly hit as the EU: 10 per cent as opposed to 30 per cent...God knows why. But who makes clarinets in the UK since Howarth stopped making them? Howarth oboes, on the other hand, will have an advantage over Lorée, Marigaux and Rigoutat.

rubengreenbergparisfrance@gmail.com


Post Edited (2025-04-30 00:20)

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 Re: What will tariff hikes do to the musical instrument building business?
Author: Chris P 
Date:   2025-04-30 00:06

"But who makes clarinets in the EU since Howarth stopped making them?"

Buffet and Selmer to name two.

Former oboe finisher
Howarth of London
1998 - 2010

The opinions I express are my own.

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 Re: What will tariff hikes do to the musical instrument building business?
Author: ruben 
Date:   2025-04-30 00:19

Chris: I . meant: who makes clarinets in the UK?

rubengreenbergparisfrance@gmail.com


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