Fear of tariffs plays out even among US guitar makers: Ross Kerber

Reuters

09-04-2025

April 9 (Reuters) - Sometimes the smaller industries can shed the best light on bigger trends.
I think that is the case with the U.S. musical instruments sector, which fears the sweeping tariffs announced by U.S. President Donald Trump last week, the head of a trade group told me.
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Companies that make gear like guitars, microphones and drums had already struggled to adjust to tariffs Trump imposed on China during his first administration, often by shifting production to other Asian nations like Vietnam, said John Mlynczak, CEO of the National Association of Music Merchants.
Under Trump's new plans, U.S. imports from Vietnam will face a 46% tariff rate, as of Tuesday, a barrier that Mlynczak said would ruin supply chains for many of his members.
"This is a highly specialized industry. It's not like you could send CNC drawings to a different factory tomorrow," he said, using an industry term for technical drawings. "Our companies can't move production right away, so they will have no choice but to absorb the costs. And we're not a high margin industry," he said.
Mlynczak's concerns about tariffs echoed those of other trade groups like the National Retail Federation, opens new tab. NAMM has asked for exemptions, opens new tab, noting how China and Vietnam now respectively account for 43% and 26% of U.S. industry imports.
Many other industries have shifted production to Vietnam, giving the country a growing trade surplus with the U.S. Vietnamese Prime Minister Pham Minh said on Monday that his country will buy more American products and asked for a delay in the tariffs' imposition.
NAMM tracks U.S. sales of everything from fretted instruments to recording products to printed sheet music. In all categories, sales totaled $8.3 billion in 2023, a drop in the bucket compared to bigger industries like agriculture or autos.
Industry sales also were down 4% from the prior year, as Americans put down their instruments and left COVID-era hideouts to spend more money on things like concerts and travel. But the music industry story still matters since the U.S. market for musical gear is the largest, accounting for 43% of global sales.
NAMM's membership includes retailers like Guitar Center and manufacturers like guitar makers Fender and Gibson. Representatives for the three did not respond to requests for comment on Tuesday.
Trump argues the tariffs should help domestic U.S. manufacturers and has cited " a lack of reciprocity, opens new tab in our bilateral trade relationships" that make it harder for U.S. manufacturers to sell in other markets. The National Association of Manufacturers has criticized Trump's plan, opens new tab, saying it will raise costs.
Mlynczak took a similar view. Members of his smaller trade group will lose sales if the tariffs lead to recession, he said. Some American companies also make their entry-level products in Asia, exposing them to tariffs also. Plus, higher costs for inputs could prove a problem, he said.
"If U.S. makers are paying more for raw materials, they're paying more to compete," Mlynczak said.