The election: import tariffs and bass prices

[shastaband]

The new President-Elect has talked about a 35% import tariff on Mexican imports and a 45% import tariff on Chinese imports. Has anybody thought about what that will do to the price of new basses? How about the used market? It would also affect the prices of much bass-related gear (amps, pedals, multi-effects). Should we stock up now on the gear we need? What will manufacturers who have moved production out of the USA do now? Just wondering . . .

 

[alack]

Being careful to avoid politics and keep it to the price of imported gear...........

Campaign rhetoric and promises have a historic record of changing once the votes are counted. I'm taking a wait and see approach. I'm sure all manufactures who make products abroad already have lobbyists hard at work looking to influence the new administration's stance on this very issue. My own thought is the 35% tariff threat is tough talk intended to bring trading partners to the table for the purpose of negotiation. I would hope everyone recognizes a full scale trade war would be in nobody's best interests. But I've been wrong before.

 

[Super Iridium]

You also need to take into account the effect on exchange rates. So even if there is no tariff imposed, a large change in the value of the dollar or peso or yuan would have a large effect on prices of imports. And conversely, even if there is a large tariff imposed, a favorable change in the exchange rate could make the prices go down, not up. I'm not saying what will happen. I just think that it's pretty difficult to predict future prices based on tariff policy.

 

[elgranluis]

Nothing to worry about for the moment, I would say. Not for the next 2 years at least.

I'd say maybe 90% of companies use Mexican and Asian imports. Hell, even the food industry. I can't see anything realistic about that 35% tax ever happening.

 

[Antisyzygy]

Nothing to worry about for the moment, I would say. Not for the next 2 years at least.

I'd say maybe 90% of companies use Mexican and Asian imports. Hell, even the food industry. I can't see anything realistic about that 35% tax ever happening.

It really depends on the strength of the movement behind Trump I think. He did flip the Rust Belt which is suffering from the loss of manufacturing. He got the blue collar working class out to vote.

The president can unilaterally institute tariffs as long as there is no other legal limitation like a treaty, etc.

We've never pulled out of a trade deal before though so it's hard to imagine it happening now. That is especially when so much money is at stake for the existing companies doing things the way they're used to.

Anyway, I think it's too early to predict what will happen. He still needs to convince the rest of us to go along with many of the plans. We have a Legislative and Judicial branch for a reason.

 

[Dr. Cheese]

I will only say that there are costs involved in any radical shift in policy, and often even those who support such a shift can shocked by how it affects them.

To say anymore is risking banning, but the policy has the potential to make imports much more costly.

 

[MobileHolmes]

My day gig is as a political science professor. Based on the preferences of basically every republican but trump, I'm fairly confident there will not be a tariff. There just isn't much support there.

 

[DigitalMan]

The stated goal is to make US manufacturing more competitive. If that goal is achieved then by definition the gap in price between imported instruments and US manufactured instruments will decrease for buyers in the US.

I have zero opinion on if or when anything will actually happen.

 

[Chris Fitzgerald]

"No Politics" means "no politics".