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 Legere Arbitrage
Author: SecondTry 
Date:   2025-07-12 21:15

I don't use Legere reeds regularly although I suspect a fair number of you do.

As a Canadian product, I say matter of factly, I am concerned if its price is going to be subject to the recent 35% tariff that our neighbors to the North have been warned this week will go into effect on 8/1.

Tariffs aren't paid by the exporting country per se. More aptly stated, the cost of a tariff hits hardest those in trade with the least flexibility to take their business elsewhere for a better deal. Often, this is the end consumer. Often the tariffs cost is shared by buyer and seller, it's just a matter of degree.

Now, if history is any indication, some face saving deal will be struck before then, I hope.

I think our current powers that be need some Canadian lip service (so we're clear here, I'm an American siding with our friends to the North here, not my country) about curtailing the "raging" Fentanyl problem (not) with this substance entering the US from North. Never mind that only 43 pounds of the stuff were seized at this border last year, while 21,100 pound were seized trying to enter the US from Mexico.

Anyway, as many of you know, arbitrage is the process of buying and selling in two different markets and making profit off of price differences that may exist in each. It's not normally illegal, in fact, it's beneficial: serving to achieve greater price equity in different locales.

A part of me wants to buy up massive quantities of these reeds now. Legere could use the cash flow to ride out this rough patch, and small amounts of profit can be achieved selling those reeds for perhaps slightly higher than current prices, (which is only fair given the risk involved in this transaction) but exponentially less in cost than what the market might experience if these tarrffs go into effect.

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 Re: Legere Arbitrage
Author: kilo 
Date:   2025-07-13 20:48

Légère recommended that US customers stock up when the tariffs were proposed. They maintain a warehouse in the US and were shipping stateside orders from there. It's possible that they've been able to do some restocking while the delays are in place, but nothing like that has been announced.

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 Re: Legere Arbitrage
Author: SecondTry 
Date:   2025-07-13 21:44

kilo wrote:

> Légère recommended that US customers stock up when the
> tariffs were proposed. They maintain a warehouse in the US and
> were shipping stateside orders from there. It's
> possible that they've been able to do some restocking
> while the delays are in place, but nothing like that has been
> announced.

I wonder kilo, given the fine details of tariff law, if the product's housing in the States would earn Legere an exemption or partial credit against such tariffs (it should.)

This domestic warehouse you cite is of course employing people in the US: the so called reason the tariffs have been justified in the first place.



Post Edited (2025-07-13 21:44)

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