So iām having my eye on a fender strat. (For now, in stock at a European dealer).
Been keeping the gas at bay for now, but seeing whatās going on internationally, iām thinking: "should i buy this guitar NOW, before the stock runs out and tariffs hit the export of musical instruments and they get a lot more expensive to buy here in Europe?
I wouldnāt rush to do anything. If prices go up then Iād buy from a different brand or wait for prices to fall again which they will have to do if exports collapse
For now, tariffs are one way - the other way. The EU will try to negotiate , but they might indeed raise the tariffs for some symbolic products first as a warning. Whiskey and Harleys have passed, so guitars might be next. However, for Asian built instruments the question will then be where they are being shipped from. If they come straight from the factory, there shouldnāt be a problem.
Funnily enough I was thinking about this earlier today. I imagine this will destroy Fender pricing in the US - For example, their new Standard model will now have a 32% tariff in the US.
I wonder whether the EU will be flooded with non-US made guitars as Fender (and Epiphone etc) try and make up for lost US sales. Going to be an āinterestingā watch.
Interesting views already. Thank you all.
Iām going to keep a close watch as this evolves. Who knows, maybe iāll pull the trigger one of these days (i feel a gas attack coming up. it seems like a great guitar to me) or iāll wait.
Whilst I would generally agree with what Matt has said (āI wouldnāt rush to do anythingā) - if the Strat has:
a. been in your shopping basket for a while
b. you really (really) want it
c. likely to purchase it at some future point anyway
d. have the means to buy it now
then Iād get it now. Prices very rarely get cheaper Irrespective of the impact of any tariffs.
Never put off until tomorrow what you can do (buy) today. If you do (buy) it today and like it, you can do it again (buy another!) tomorrow ⦠!
I think you could make valid arguments for the prices rising steeply or for not much happening. People might rush to buy the last of current stocks ahead of anticipated rises or equally people might choose to shun American products regardless of the price as their means of showing disapproval of the political situation. And of course maybe the tariffs in Europe wonāt amount to much if theyāre only applied to select items.
As @Weath72 says the least likely scenario is prices falling from their current levels, unless of course the value of the dollar plummets against the euro/UKP and Iām not an economist so I have no clue if thatās likely or not!
If you know you want the guitar and you have the means then Iād get it now. If youāre more on the fence then Iād wait. I suspect high tariffs will be temporary and that most affected countries will negotiate new trade agreements rather than maintain a sustained trade war.
Iām going to hold out just a little longer, but not that much longer. Iām going to be out of the country for a few days, but when iām back, iām ordering⦠I want to be there when the courier arrivesā¦
As I understand it, what counts is where it was made and imported from. So you could buy products with the headstock of a Fender or Epiphone, but if it was made outside the US and never passes through the US then it shouldnāt be affected - in theory. But that might be my naive way of looking at it. But potentially a US made Fender might be affected in the future.
Anyway, other than China, it seems that most of the other countries have not announced tariffs yet against US imports. We will have to wait and see.
Itās really difficult to know what will happen. I donāt think anyone knows - even the top economists.
I have seen this editorial from Music Trade magazine quoted elsewhere. As it comes from a newsletter that Iām not a subscriber of, I cannot vouch for its authenticity. However, it raises interesting points about how American āAmericanā instruments really are since so many parts and even some of the factory machinery itself are imported from Europe or Asia.
Personally, I think the best thing to do is to check the second-hand market or non-US made instruments, or just to be happy with what you already have.
This is fine but the question is about tariffs and will they cause guitar prices to rise in Europe? And by extension will it be purely on instruments manufactured in the US or instruments from US companies manufactured elsewhere?
I think itās important this thread stays directly on topic because it could easily become political and then the thread will get closed.
I donāt think it applies to manufactured goods out side of the USA. What ever country you live in will either use counter tariffs or just keep the ones they already have. So for American companies making guitar in China only the tariffs your country already applies to goods from China will apply.
As @Socio and @stitch have said, itās the country from where the good is shipped that matters, not the country where the headquarters of the company are situated. If I order a Mac through the Apple website and it is sent to me from China, I will pay the import tariffs for goods originating from China, not from the US.
Even if Apple sends you the computer from the US warehouse, if it was made in China you will still be paying the Tariff. Unless Apple chooses to eat the cost of the tariff and not pass it on to the consumer
Yup, the tariff would have been applied to the manufacturing cost not the retail cost which as Rick says it would either be passed on, absorbed partially or absorbed fully.
Thanks for the explanations. Itās a bizarre old thing that (in my case) itās as relevant whether the U.K. has a good relationship with China as the US when it comes to a new Mac or iPhone (although the relative strength of the dollar exchange rate also affects the price of goods, potentially more so than the tariffs). I use the example of an iPhone but the same applies to a Fender made outside the USA.