Tariffs, Guitars, And You
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- เผยแพร่เมื่อ 9 ก.พ. 2025
- In this video, I will offer my thoughts on tariffs and how they might impact your guitar-building or repair efforts.
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"When you give businesses a reason to raise prices they will!" No truer words have been spoken on the interwebs.
Like corporate taxes?
Tariffs have nothing to do with consumer pricing. If you own a business pricing is based on on consumer demand. Tariffs just limit your market share so Tariffs could actually lower the price of goods for USA consumers. Why don't people understand this stop buying into the media narrative.
Every say I feel like I live in an Onion article now.
Meme culture was a joke… but as they say in jazz, repetition legitimizes. 😢
Every say? Maybe you never lived in the real world.
@@LogicalQMemes are meant to be funny in a satirical way. Satire only works if it's rooted in reality.
I have learned much from your channel. So many wonderful detailed tips and instruction on guitar building. Ive found it very valuable.
Lately it seems the channel has shifted focus.
It's called "the law of unintended consequences." A relatively simple concept that we should have anticipated.
I started building my genuine MIM parts to my specs in anticipation of the parts going up.
So good on me thank god i completed it. 😅
I find it absolutely hilarious that there are Americans, members of the most powerful economic and military country in the world, who believe much smaller countries are taking advantage of them because of trade imbalances. Thats the same as me getting upset at the corner store and claiming they're talking advantage of me because I buy more from them than they buy from me.
Trade imbalances have always and will always exist. It's a part of the free market, known as free trade when between countries.
so you think we should just continue subsidizing Canadas market billions of dollars every year? for what benefit to us? I think you sound absolutely hilarious . wait till you see the changes that will occur over the next few years. Part of staying one of the most powerful countries in the world is stopping others from taking advantage of you
This is the third time I've posted this comment this morning: The administration is claiming the tariffs are punishment for the open border policy and the flow of illegal drugs into the US.
@@HighlineGuitars are they imposed now today? were supposed to start last night at midnight, or were they postponed like mexicos?
@@gibs8412 Canada and Mexico's tariffs were postponed for 30 days.
@@HighlineGuitars right but the president uses nomenclature like "deficit" and "trade imbalance" when talking about it publicly, and canada has in total only supplied 43 pounds into the US, whereas US citizens living in various states with an ongoing opioid crisis are importing fenty precursor and making the drug within the country from china at a much larger amount, nearly equal to the 100,000 pounds coming in from mexico
As for bringing large scale manufacturing back to the US - sorry, that ship has sailed. Rebuilding that infrastructure would take decades, and then nobody would want to pay the prices that result from paying US manufacturing workers a living wage. Even China has becoming too expensive, and manufacturing is moving to cheaper locales. Americans voted with their wallets a long time ago and ousted manufacturing from the US. We were welcome to "Look for the union label" and "Made in the USA", but too many said, "Nope, I want a $5 t-shirt."
Sadly, I don't see this helping boutique guitar makers. The buyer for a $150 guitar isn't going to pay 10-20x that just because the import price went up to $200.
It can be done. I'm a design and robotics engineer specializing in manufacturing. As you can imagine the competition with China is high. We have the benefit of very fast turnaround and adaptability to the market. China cannot compete in this regard. Walmart doesn't want to wait months for their product to be shipped on a boat that may or may not make it here. We can have product to their warehouse in 4 hours. We have a history of shipping products out the very same seek we began design. That's how American manufacturing competes. Our business is growing faster than ever in our companies 35 year history and we aren't unique in that regard. Our products are as cheap and higher in quality as well. It's an easy sell. The motherhood of invention is necessity. Watch and be amazed at what comes out of this. Have some faith in your fellow Americans! Thee will be great opportunity in the near future!
As a Canadian, and I am sorry to wrap you up in this when you only wanted to talk about guitars, I just want to point out that Trump's claim of abuse are his own. The United States has always had skilled negotiators who have negotiated in the best interests of the United States. Countries targeted by Trump's tariffs such as Canada and Mexico have not abused the United States in our trade agreements, military alliances, or border management. America is, lets face it, a proud, uncompromising, and litigious culture that holds most of the cards, and no American administrator, diplomat, legal representative, or law enforcement officer would have allowed unfair practices to happen. I am deeply sorry small business owners such as yourself have to needlessly suffer such uncertainty.
Yeah, I don't think my fellow Americans anticipated this much stupidity right off the bat. As much as I might personally feel like Trudeau is an idiot for Canada, there's never been a thought in my mind to at all view them as an enemy or in the way that he's deciding to treat them.
So well said. Looks like no one understand that the free trade was dealt with, it is a contract! In time next year it is due to deal once again. It would be illegal to do so because a king wannabe dont feel like it anymore and invent a false crisis a the border. Sad because USA was doint quite well on these terms, like you said, skilled negotiator.
Well said.
Seems like someone at fender saw this coming. It was only a week ago that every other guitar channel was asking what was the point in their new made in Indonesia range..
You are spot on that prices will go up and it will reduce the money people have to spend on discretionary items like guitars will be reduced. I think the best way to prepare is to imagine the stupidest possible outcome and get ready for how that will affect your situation!
Corporate taxes work the same way.
we have been living in the stupidest outcome the past four years, things are changing for the better. you will see.
If these tariffs don't stick, the US is still gonna be in trouble. In more than 1 interview, Trump has talked about 1913 US. Back then, there was no sales tax and income was driven from tariffs. But that was also globalization and doesn't work anymore. Any no country has successfully reversed domestic globalization. He and the GOP also want to put through another huge tax cut for the top. Even with the increases they are putting on everyone else, it still won't balance the books. Tariffs are just another tax grab on the middle class to offset the cuts for the upper class.
Wrong. The top 10% of earners bore responsibility for 76% of all income taxes paid, and the top 25% paid 89% of all income taxes. While all the other countries were charging tarifs and not being charged one. ..... essentially stopping US goods from being sold there. Altogether, the top 50% of filers earned 90% of all income and were responsible for 98% of all income taxes paid in 2021.
He has taken my gov job, is gunning for my wife's job at the VA, caused emotional pain in my life....and now he is going to make it harder to do the one thing i TRULY love (tinkering/buying guitars)??? This cannot be ok
You can't find work in the public sector? That sucks. I think your wife is safe, unless she is part of huge systemic inefficiency. The VA is something that the president has vowed to fix. Hopefully your wife will benefit from a properly managed department.
@@71kevmanright on!
You don't have to worry for now, but you can't predict what Trump will do.
If view things through a lens of "what would benefit Trump and his cronies", you can come pretty close!
@@scottakam This is how oligarchies work.
its time for trump and musk to go .. how are day one prices , did energy come down 50% day one? trump is looting the treasury and installing a coup with musk
This feels like the only honest discussion I've heard on the topic.
I work @ a music chain in Canada, Gibson & Fender brands went up $50-150 .Yesterday.
I also build & repair guitars, my DMs are off the chain, because they rather get their guitar repaired or buy one of mine . This is just yesterday.
I want to see the sequel to this video in 4 years.
👍
@@Vern859 why?
Well thought out comments - and certainly ones to keep in mind over the next few months. There are plenty of us in areas outside of North America that are likely to get hit by tariffs because... reasons. I really hope a(nother) tariff war doesn't start - nobody really wins.
Sadly I believe some damage has already been done to Gibson USA. I know here in Canada a lot of us musicians wont be buying Gibson USA for the foreseeable future. Understand I am not selling the Gibson's I do have..but wont be purchasing any new ones for now.
Same here. What I already bought, I'll keep, in memory of a peacefull time. But from last november on, I've already changed my buying habits. I also play tennis on a fairly high level and usually buy cases of Wilson US Open balls... That too is out of the window. Can't bear to touch anything with "US" tag on it! Americans dont get how frustrated we are now seeing this bozo in charge doing bizarre things, like wanting to occupy the Gaza strip and build condos on it.... USA sadly lost so much credibility!
It could affect me as a builder I buy parts from Canada both wood and tools also very well spoken Chirs
Many of the same people upset at the prospect of tariffs are the same who will say we need to raise corporate taxes. Both have the same effect on retail prices.
Maybe that’s why Fender are shifting some production to Indonesia away from Mexico. ‘Let’s play Twister, let’s play Risk!’
"tell me are you locked in the punch?"
Best luck to all.
could you make a list of the ali express tools you recommend thanks
As one Canadian mentioned, Gibson is taking a hit, it’s not only because of the tarifs but because the attitude towards Canada.
I like your update in the beginning of the video. Apparently tariffs work and now we're going to have a more secure border which is great and much more important than the price of guitars. Love your videos!
It doesn't "work" for the consumer.
@@doomwreckertelevision3527 What?
No. Consumers just hate raised prices.
More drugs enter Canada from the US than the other way around. It should have been dealt with through negotiation not through unjustifiable bully tactics. More gets done through cooperation. The USMCA agreement signed by Trump during his previous administration is an example of negotiation.
@@doomwreckertelevision3527 You seem to have some difficulties with communication.
Also Trump 2028 would be against the constitution.
@@bsharp55 Fun fact, 0.2% of all Fentynyl entering the U.S. comes through the Canadian border. Tariffs in this case are a "solution" to a problem that quite literally does not exist. Seems to be the height of insanity.
You are a good man Chris. ✌
Guitar production will just shift from China to other Asian economies with lower tariff rates. Manufacturing costs won't increase that much, but North American guitar companies will still jack up retail prices anyways.
@@briand377 Schecter are made in SK Already
This already happened. It's why Fender announced the Standard line "Now made in Indonesia!" Last week. Most of the American market is flooded with Indonesian guitars now.
The general US America rule is basically, "The prices are going up" The whole video can zero in on that one phrase. It's the new norm for US America.
"Mexico announces retaliatory tariffs"
US: we are sending you 10,000 Mexicans
Mex: there is a 25% tariff
US: we are sending you 12,500 Mexicans
A lot of those people aren't even mexicans. I think this is a misunderstanding, they are from all around central america and northern south america.
@banditkeithkingofduelmonsters Everyone from south of Texas is a Mexican.
one gets so few chances to raise prices and not look like a jerk so sure they need to raise prices yesterday and government meddling is always going to provode that cover to increase prices. good point and well presented. thanks!🎉
those of us who raise prices are also paying higher prices. stuff not more valiable, it is that money is less valuable ie confodence in govenrment stability down, when u had vietnam and lost gold standard rates were super high, money was expensive cause the government was being irresponsible and warlike, now costs will go up because of the same thing. the money is worth less because it is supported by confidence in an irresponsible nation and other such nations and when we fight we have useless currency that is worth less.
Unfortunately, I fear people REALLY misunderstand how tariffs will affect us Americans. Think of all the parts that go into making a guitar (I'm not even talking tools and supplies!).
The hardware: tuners, bridge, knobs, , all those small screws....
The electronics: the pots, jacks, switches, pickup parts....
The materials: wood, binding, nut, finishing products....
[Etc. Etc. ad nauseum]
How much of that is ACTUALLY 100% made in the USA? Not "assembled" in the USA but FULLY sourced -- raw materials and all -- from America.
If some or even most of those parts are from China, Canada, Mexico, or any other country with a tariff [soon to be] slapped on it, we're gonna feel it. It's not good for builders, and not good for buyers.
I hope I'm wrong -- I love guitars and follow a lot of local USA builders and want them to succeed. But I don't have high hopes.
Tariffs on China are going up 15% so you might have to pay $15 more for that $99 guitar. However, there are so many guitar manufacturers in china and other countries that there will still be healthy competition.
Also, if the guitar market slows down, warehouses start filling up to the point that they'll lower the price to move them. When supply goes up but demand goes down then prices go down.
There are guitar packages going for less than $99. IMO, the guitar market is so saturated in the US right now that prices on guitars have been falling like a rock.
A voice of reason and clarity. You are right on.
On Amazon right now.... Like right now .... There is a squier model that just went up to over 800 dollars.... A squier
@Davidthestratman7 Which squier model? I wasn't able to find it. There were a few fender models that were pricey, ie Tom Delong and Eric Clapton series etc but that isn't out of the ordinary
The tariff would be imposed on the wholesale value of the item. So a $99 dollar guitar that really has a wholesale value of about $50.00 would get dinged for $7.50 bringing the price all the way up to $106.50. Crazy!
Prices have increased more than this over the past 5 years. Just be honest with yourself and others.
@71kevman No reason to say I wasn't being honest. I didn't know the 15% tariff was on the wholesale price of imports from China. I'm not an expert on tariffs. As I stated in my original post IMO, the US market seems saturated with guitars and I don't really see the price moving upward much if at all.
Best way to avoid Tarrifs??? Make guitars in America.
So it’s on a 30 day hold. I tend to buy Chinese guitars, for obvious reasons. Not Chibsons (yet) but I own 7 Firefly’s and 9 Westcreeks and 3 Epiphones and a Squier bass. So, I hear that Chinese ships are not being let into port or something like that? So any guitar companies that ship their guitars from China to the US to ship out from there, those places are gonna get shut down pretty quick I would imagine.
Nobody seems to be asking where will the tarifs money go 🤷♂️
Flying to Mars is expensive.
@@HighlineGuitarsgood Joke 😂
We have to start somewhere. This is complaining about a problem that we all had a part in. Buy American made stuff and it will get cheaper. China has control over most raw materials. We can either further give them more of an advantage by sending them all of our good ideas to be made there, or we can take this opportunity to make our own stuff. Will you get a tool kit for $3? Not right away, but we have to support our own country or we'll be nothing more than useless consumers.
“Punish other countries for abusing their relationship with the United States”? Really? How? Wtf are you talking about? Did you need to add this asinine excuse for the tariffs? I love the hypocrisy of your hurried purchase of AliExpress items - despite China’s “abuse of the relationship” with the US. 🙄 Unsubscribed.
Other countries are ALLEGEDLY allowing the flow of illegal guns and drugs across out borders. I didn't come up with this excuse or make the policy. Don't shoot the messenger. I just want my viewers to prepare, especially if they operate a business.
So true!
just buy the indonesian guitars. they are better than the chinese ones anyway
The Orange One is such a tool.
Your mom voted for him.
@popsfereal good one
Prices are actually cheaper. Guyker is running penny sales and so are e bay dealers. Nice.
Fingers crossed!
I started preparing in November. After March of 2018 nearly destroyed my business and my industry in the US (mostly handing the industry to China - ironically), I've been trying to tell everyone to prepare for a new round of pain. Politicians be politician-ing.
Well, they have to find a way to help Elon get to Mars.
@@HighlineGuitars If Elon was volunteering to go to Mars personally, I'd contributed.
@@HighlineGuitars LOL! Yes the best
Still waiting.on prices to skyrocket..... hahahahahah
This is from a Google search on the topic of prices on AliExpress: Yes, according to recent reports and user experiences, prices on AliExpress have generally been trending upwards, with some items experiencing noticeable price increases, particularly when compared to prices several years ago; this is likely due to factors like rising production costs, shipping fees, and currency fluctuations, although the platform still offers many affordable options if you shop carefully and compare sellers
Buy guitars made in the USA, better anyways.
Tariffs are imposed on wholesale value.
Prices have come down on lots of things and many factors are at play.
How much does it cost to throw a decent set of Alnico 5 magnet pickups now?
Even with an additional 15% tariff factored in for cheap imports you can do it for less now than you could have done it in 2010 or 2019.
Decent can mean imported, deal with the tariff if you feel the need for a $60.00 set of pickups.
That being said no manufacturer is going to pass 100% of tariffs on to customers as it will weaken their position in the market.
Some manufacturers may open up shop in the US too. That'd be neat.
Maybe Peavey will bring production back to Mississippi.
I am extremely skeptical that any manufacturing will come back to the US. It's just too expensive.
Businesses are going to raise the prices when the tariffs hit, but they won't necessarily drop them if the tariffs are lifted. Some of the price increases will be permanent.
EDIT: Should have waited until the end of the vid before commenting!
The Fair Tax. Replace corporate taxes with a national sales tax. Anout 21 cents out of every dollar we spend at tetail goes to reimburse the companies that participated in getting the procts and services you purchase to market. Eleminate corporate taxes and put a 20% tax on new products and services. Competition will drive the prices down and the US will become an economic and manufacturing juggernaut again.
All well and good until consumer confidence plummets.
@HighlineGuitars Why would it if the retail price stays the same while the job market increases?
@HighlineGuitars I encourage you to read The Fair Tax by Neal Boortz.
@@samizdat113 Expect the unexpected.
@HighlineGuitars Please read the book
This is basic logic thinking regarding tariffs. This could actually lower the price of American made guitars it works both ways because it would cost American guitar makers more to sell in foreign markets. Tariffs is actually over all good for USA CONSUMERS. To be fair it doesn't change the price of items drastically because the price of goods is usually based on consumer demand. Tariffs just lower market share for companies and if your limited to American customer base and they aren't buying your product you will be force to lower the price or go out of business. This false idea tariffs are going to skyrocket goods is not accurate. Please stop spreading false narrative.So to speculate in your logic is false I COMPLETELY DISAGREE WITH YOU. Your logic would be fact if only other countries could manufacture guitars and USA could not but everyone knows that USA is well capable of making goods and products this is going to be great for the economy. There will be a shock in the market but it isn't going to be long term.
If tariffs are good for USA CONSUMERS, why did Trump reverse course? Can you offer proof that I am "spreading false narrative?" I can show evidence that I am not.
www.bushcenter.org/catalyst/opportunity-road/rooney-tariffs-rising-prices
taxfoundation.org/research/all/federal/trump-tariffs-trade-war/
www.brown.edu/news/2025-02-03/tariffs
econofact.org/factbrief/did-the-trump-tariffs-lower-prices-for-american-consumers
www.bu.edu/articles/2024/would-trumps-tariffs-send-prices-soaring/
@@HighlineGuitars Gabriel DeLuca Vinocur
Gabriel is a junior at Tufts University studying Quantitative Economics and currently in a year abroad at Pembroke College, Oxford. His interests include monetary policy, international economics and game theory. so your sourcing a economics student article who hasn't had a real life experience in operating business or actually has first hand knowledge of how to run a business got it. lowering market share for companies doesn't help overall business but if we are speaking only in terms of price of products tariffs are good for the over all economy for the USA. The current system exports wealth of Americans and helps builds economies that are less developed then that of the USA. my source is the current economy of CHINA USA wealth has been exported into China for decades and has helped that country become a global power.
Maybe you guys don't need to own 30 guitars..... or buy usa made or guitars made in countries without tariffs
Don't comment on politics unless you really know what is going on. There are plenty of people doing that. Tariffs are used as leverage. Since you jumped on this wrongly like so many others, you are doing no one any favors.
Do you want to censor my freedom of speech? 😁
"Don't comment on politics unless you really know what's going on" -- this begs the question, who in truth knows what's actually going on? Also, who decides who is allowed to speak on the topic of politics? Think it through. Your reasoning, such as it is, reeks of censorship. Political dialog is an open domain. There is no entitlement. In the U.S. it is a constituationally guaranteed right. For now at least.
I am not a fan of talking politics on guitar channels.
Neither am I. Economics, however, is a different story.
Yes. This is likely the end of cheap chinese pickups and parts - with your without the tariffs being put in place.
A 10% tariff (or even a 20%) is going to make that crappy $20 chinese pickup $22... Is the extra 2 bucks really going to put you in the poor-house?
@@blauschuh yes
@@blauschuhthat’s not how the math works, bud.
Importing companies aren’t going to take a hit to their margins, so costs won’t go up simply by the value of the imposed tariff.
Additionally, other costs go up when fuel and shipping costs do.
That $20 pickup is likely to sell for $30 when all is said and done.
Oh, and what about all of the imported components that go into “American” made goods? Not every single screw, nut, and washer is made in the US. Hell, a good deal of the lumber used is grown elsewhere. Canadian maple, anyone?
Our nation takes priority over cheap,guitars.
Absolutely!
I wish that were true. Make Mars Great Again!
Right. And indiscriminate inflationary policies are not in our country's interest.
@@markhusbands2037 which policies and what exact parts? I’m kidding I know you don’t your rear from a hole in the wall. Cheers.
Wrong. 3 days ago gas went to $2.75 and groceries went to about half. God forbid you have to buy your things with your money. Stop e begging. Its pathetic.
Your wrong gas went up to 3.19 a gallon grocery prices are back up trumpinomics at work make america stubid again.
Bidenomics was better gas was down in my area just 3 weeks ago grocery prices were starting to go down now supply shortages on food that's crappy trumpinomics for you just like Hitler in nazi Germany where their were huge food shortages and high prices.
ok Jerry everybody got it wrong but you
Obvious bait.
I buy and build with only American made products. It’s nice having a real leader back in the White House. 🇺🇸
I tried, but I found that a lot of parts that are supposed to be made in America, aren't.
Thank you Mr Guitar Building Economist. If you feel your products compete with $99 guitars, I won't be buying any of your luthiery handiwork....
I don't feel like my guitars compete with $99 guitars.
There is no way to know how many small businesses these cheap chinese parts have destroyed over the Decades. If this is something you're worried about then you literally participated in the death of small businesses in the US. If you want to build cheap ass chinese guitars then move your ass over there.
there is no way to know how many it might have helped... plenty of businesses couldnt even stay in open if they didnt have those "cheap parts"
If you want to type comments on the internet using a Chinese phone or keyboard then move your ass over there.
Whoops! You can't find one without Chinese components? Too bad...
Finally somebody that gets it. The guy is complaining about the very thing that will certainly put him out of business. Real weird.
@@DeAthWaGer There is one. It's called the Librem 5, even has a user replaceable battery. Ironically your comment and sentiment only proves the point of the OP. How can we ever get out of this hole if we only buy from other countries? We're sending them all of our best ideas. It will be more expensive while we build our own manufacturing abilities. But that's a sacrifice I'll take any day of the week.
Congratulations TRUMP