Tariffs have been a hot news topic, but the question is, how are they going to affect you and the gear you need? The short answer is that everything is about to go up 25%, the long answer is a little more complicated.
A tariff is a duty tax paid by the importer, for example, the lighting engine of our Spatial Pendants are manufactured in China, so when they arrive in customs here in the US, we have to pay that tax bill. So if we manufacture $100,000 worth of LED lighting engines for our pendants, we will now have to pay a $25,000 tariff.
The Political Side
We aren't making any political statements on the tariffs, but merely stating how they are going to affect your price. If you are a company, the recent economic policies have been a give and take. A much lower tax rate verses higher cost of goods. If the tariffs are here longterm, the industry will probably start shifting manufacturing to other locales.
So What Brands Does This Affect?
Here's the crazy part, almost everything is made in China. This includes the high end, high quality professional gear. The few who manufacture in the US, Mexico, and Europe still use Chinese components. When the tariffs increased 10%, within a few months, most of the brands we carry increased their prices to reflect the new tariff. That 25% really hurts when you're buying a $30,000 digital mixer. Springtree LED and some brands absorbed that 10%, but that is less doable with a 25% tariff. So expect to see some price increase from those companies that manufacture elsewhere too, like JBL who also has a manufacturing presence in Mexico. Our Spatial Wash COBs will be having a small increase soon to reflect this change.
Are the Tariffs Going to Last? Should You Buy Now?
That is the million dollar question. The answer is, who knows? The tariffs were a bargaining tool to work out a new trade deal with China. A trade deal could formalize tomorrow, or this can be the new reality of the market. Springtree LED never encourages people to buy more than they need. What we do encourage is that if you need to purchase big ticket items, you start making calls and see if you can get pre tariff prices on stock that made it to warehouses before the tariff increase happens. We don't want those we serve to have to pay more. Right now, price increases haven't really kicked in like they will as we go deeper into summer.
With that said, Springtree LED gear will be continue to be an affordable source of the medium range of professional gear. Gear that is reliably simple and affordable to use. We are able to charge less because we don't use a distribution network.
We hope that clarifies things a little bit, but if you have any questions on tariffs, feel free to call or email us at firstname.lastname@example.org.
Thanks for Reading!
Brandon Vaque grew up around AV, being dragged to help at rental events for his parents AV company. Before the age of 18, he had been in over a hundred church installs as his dad attempted to instill in him a good work ethic. Then after college, he did what he swore he would never do and joined the family business. His passion has been to simplify the lighting process, to take the stress out of navigating between thousands of similar products and control options.