Consumers across the world are currently watching prices very closely, with the US tariff situation causing a fair amount of uncertainty – and that is especially true of the hi-fi industry.
The exact figure for the tariffs varies depending on which country the brand is based and manufactures products in.
But with the US adding a base 10 per cent rate for all countries, any product that is not made in the US will face an additional import tax entering the territory. And that's a cost that can radically change a company’s bottom line given the size of the market.
In an attempt to assess the impact of the new US tariffs, What Hi-Fi? has talked to some major brands that provide many of the products we regularly review. And the picture being painted is fairly grim.
Audio Pro CEO, Nils Ankarcrona, told What Hi-Fi?: “We will be increasing prices by 20 per cent in the US market as of April 15. This is a necessary step due to rising costs in our supply chain and imports.”
This response is unavoidable, said Ankarcrona, as the constantly changing situation means the firm has been forced to take a defensive stance.
“Currently, we do not plan to make changes to our supply chain, as we believe we are already operating in an efficient and optimized way. Our current setup ensures high quality and reliable delivery. However, the future of the tariffs remains uncertain – both in terms of duration and rate – which makes it difficult to take long-term decisions at this stage.
“The main challenge is the increased import costs, which directly impact our US subsidiary. This affects our pricing and overall profitability in the US market.”
Cambridge Audio owner and CEO, James Johnson-Flint, mirrored Ankarcrona’s focus on uncertainty. He added that the tariffs are particularly difficult for audio brands, which rely heavily on some of the hardest hit countries for parts and manufacturing.
“The tariff news we have all received is nothing short of worrying for the US population as a whole, and the impact it will inevitably have on the prices of almost everything they buy. Even if a product isn't made in China, or in other countries outside the USA, it's probably made from parts that are, or with an overseas contribution in the supply chain,” he said.
“The tariffs announced are shocking and make little or no sense, especially to an industry like ours that has no realistic ability to produce audio equipment locally in the USA, especially after so many years of manufacturing capability stripped away by the USA's thirst for low prices enabled by Asia.”
Johnson-Flint confirmed the brand currently doesn’t have plans to raise prices, but may soon have to.
“As a brand that loves to offer high levels of value and performance, the last thing we like to do is increase prices – however this now seems inevitable,” he said.
Yamaha and LG representatives also declined to rule out the prospect of price increases.
“It is impossible to predict how the tariff situation will be settled. We will continue monitoring the situation, and only adjust pricing if it is necessary,” a Yamaha spokesperson told What Hi-Fi?.
"LG Electronics is closely monitoring the evolving international trade landscape and exploring various scenarios accordingly," mirrored an LG spokesperson, in a separate statement.
Numerous other brands we contacted refused to rule out price increases but asked to comment off the record.
We will continue to liaise with manufacturers and update you on any further developments as they happen. In the meantime, make sure to stay apprised of all the latest discounts on offer in our best hi-fi deals guide.
The audio industry is one of many being hit with potential price hikes. Phones are another key concern for consumers, with many handsets, including Apple iPhones, being made in China. Laptops and computing equipment prices are facing similar uncertainty.
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