The entire tariff situation remains a confusing mess.
DT threatens tariffs of a wide range of percentages – on varying countries per his whim. What’s real? What isn’t? What is posturing? What actually is assessed?
How can an importer PLAN AND PRICE?
Europe
This missive is specifically about the situation with Europe. The tariff is 15% now. To be clear, the American importer pays the tariff. The Euro vendor does NOT.
Atoll and Atohm are two of our best suppliers. Their gear is made in France. Their products have been hit by tariffs.
Thus far Audio Excellent, our importer for Atoll and Atohm, has paid these tariffs and NOT raised prices in the US. They have been EATING the 15% tariff tax.
They have done so hoping the tariffs would be eliminated or reduced. But the pain is persisting. They’re done swallowing the damage.
Their business structure is based on certain profit percentage, not 15% LESS than that model.
In short, we’ve been told 15% MSRP increases are imminent- Oct. 1.
Atoll and Atohm are great products. They will be worth 15% more than they cost today. But…
Why not buy now and beat the price hike? So, please view this as a LAST CALL to save 15%.
All Boats Are Rising
The tariff plan was ostensibly to make imports more expensive- to give the American gear a bit of a price advantage. You would be more inclined to buy American because it was built here AND, make no mistake, it would have a price advantage as well.
What has happened with the assessment of tariffs is 100% predictable. Our American manufacturers have seen these hikes and GUESS WHAT?
They have raised prices under the cover of the tariffs!
We’re back to the same relationship of pricing, just with higher MSRPs.