Reply To: Softube Console 1 Channel Mk III and Fader Mk III price increases

[peter]

On bapu said

The ElephantInTheRoom that shall not be mentioned?

As long as we don’t get into divisive political opinions; we’ll leave that for Facebook, X, Rumble, etc. We can certainly discuss the facts of tariffs as they impact the musical gear we buy (which is the case for Americans buying gear made or having components made in other countries, especially China), as the tariffs significantly impact the pricing and affordability of the gear we use, it is certainly something open for discussion here — as long as steer clear of political opinions and arguments about tariffs, opinions about political parties, or political figures.

To set the example of that discussion, just sharing the basic facts: Today, the US president announced that US tariffs on Chinese goods will again rise, increasing from the current 104% to 125%. Of course, that means that Softube may very likely need to increase its prices again, as I believe this announcement was made factoring in the 104% tariff rate as will every company that sells gear that is made wholly or with components from China. I wouldn’t fault these companies when the taxes are now going to exceed the cost of manufacturing those goods. They couldn’t sustain business operations without raising prices. These Softube price increases reflect that the company is willing to take a loss, and no doubt, is hoping the US’ tariffs are temporary. Long term, if the tariffs remain in place, I would expect a much greater price increase than this. Basically, Softube is accepting lower profit to create less market disruption, and they’re not sure how all of their competitors will respond to the US’ tariffs. There really is no precedent for tariffs this large in our lifetimes.

Sometimes, if a tariff is small (e.g., under 10%) and expected to be temporary, and the seller’s markup on the finished product is big enough, a seller can temporarily absorb the tariff. But a tariff of 100 percent or more is extremely high, not in the realm of normal and that can severely disrupt trade. Consider that 2.2% is the norm for tariffs and aligns with WTO rules; a tariff of 100% or more is extremely rare.

This will mean that, for Americans, the cost of hardware gear imported from China or containing a significant amount of components from China, will see prices on that gear rise significantly. Conversely, it means that citizens of China — and other countries that the US has tariffs on that have responded with tariffs, will see the price of US goods rise significantly. And there are very high US tariffs going into effect in every other nation in the world too, but none as high as China. The current US president has put 10% tariffs into effect now, with much higher tariffs going into effect in the next 90 days. That will have a dramatic impact on MIDI gear, keyboards, synths and all types of hardware musical accessories. Fortunately, the US tariffs CURRENTLY do not encompass software, they’re focused on physical goods, but, of course, that could easily change.

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