Latest news with #importCosts
Yahoo
2 days ago
- Business
- Yahoo
Trump's tariffs on camera gear can only hurt photographers
When you buy through links on our articles, Future and its syndication partners may earn a commission. The full force of Trump's so-called 'reciprocal' tariffs has started to hit hard. Earlier this week, we reported that the price of a whole host of Nikon cameras and lenses shot up, followed not long after by Canon hiking prices on its camera gear. Sony has also raised its prices recently, and Leica almost doubled the US price of the one of its cameras before going out of stock seemingly indefinitely, all as a direct result of the blanket tariffs levied on anything not made in the USA. The tariffs are even rumored as being responsible for the delayed Sony A7 V, though that could well be down to general mass production issues. Tariffs are imposed on the importer of goods as they are brought into the United States, not the manufacturer. So, the importer has the choice of attempting to absorb the additional cost it is required to pay or passing it on to the consumer. The way the big camera corporations tend to operate is that the parent company will sell its products to subsidiaries it owns in the respective territories it operates in. That price is set, so it's up to the local subsidiary to decide whether to cut into its own profits or pass the costs on. In an already competitive market where margins are relatively thin, there may not be much choice other than to do the latter. The idea, of course, is to cut the competitive advantage that foreign firms have over American ones due to lower labor costs overseas (among other things) to create a more level playing field, or to persuade multinationals to move manufacturing to the USA. But when it comes to the photography market, Canon, Nikon, Sony et al have no history of manufacturing their products in the United States and are unlikely to move production to the country. Particularly given that, even in the short few months that they have been threatened, the levels of the tariffs change seemingly on a whim. It would likely take years to tool up manufacturing in the US, in which time who knows who will be in charge and what will happen to the tariffs. And even if they were to gear up for American-made production, the nature of international supply chains would mean vital components that are only ever likely to be made overseas – such as camera sensors – would still have tariffs imposed on them. Even American historic photographic brand names, such as Kodak and Polaroid, haven't seen a camera roll off a production line in the USA for years. And with no locally made competition, there's little incentive for camera manufacturers to eat into their own bottom line so they can sell to importers at a lower price, as they're all in the same boat. At the very best, it might cause companies to switch production from their higher-tariffed production lines to countries they already operate in with lower tariffs – from China to Japan, for example, as is the case with some Fujifilm cameras – but it won't make the slightest difference when it comes to creating more American jobs. If anything, the reverse is more likely to be true – as if US citizens buy less camera kit in response, then it will only negatively impact US-based resellers, who may in turn be forced to cut their own costs. Where there may be some logic in imposing targeted tariffs on foreign-made goods that are also manufactured in the USA, such as automobiles, for products that the US has no expertise in manufacturing, the only people who will suffer are American consumers – either by paying over the odds or having to do without the latest and greatest kit because they can no longer afford it. So, whatever your view on the wisdom of protectionism, there's no doubt that when it comes to camera kit, tariffs on photography gear hurt American photographers above all else. Check out our constantly-updated story on camera tariffs for all the latest developments on the tariff situation.


Free Malaysia Today
3 days ago
- Business
- Free Malaysia Today
In US capital, Trump tariffs bite into restaurant profits
Higher import costs have eaten into margins and fed into consumer prices in the three months since US President Donald Trump unveiled global tariffs. (AFp pic) WASHINGTON : Brazilian coffee beans, French champagne and Chinese teas – drinks are a profit driver for US restaurants, but higher import costs have eaten into margins and fed into consumer prices in the three months since President Donald Trump unveiled sweeping global tariffs. A stone's throw from the White House, a restaurant group that takes pride in dishing up fresh local meat and produce has found itself having to raise prices on its menus. 'The reality is, we have to pass along some of those to our guests,' said John Filkins, corporate beverage director at Clyde's Restaurant Group. 'Could be anywhere from 50 cents to US$1 on certain wines by the glass, or spirits, or some of our food menu items,' he told AFP. 'We've seen huge increases in coffee and teas, and we're beginning to see some of those increases in food, as well as paper products coming on through as well,' he added. Clyde's, which opened in the 1960s in Washington, has more than a dozen restaurants in and around the US capital. One of them is The Hamilton in downtown Washington, where drinks prices have ticked up. While management has tried to limit increases, Filkins said this has been tough. Businesses have encountered snarled supply chains and higher costs since Trump imposed fresh tariffs after returning to the presidency in January. In April, the president unleashed his widest-ranging salvo, a 10% duty on imports from most trading partners. This is expected to surge to higher levels for dozens of economies. 'Low cash, low margin' Leaders like Filkins are eyeing a deadline next Wednesday when the steeper tariffs are due to kick in. These are customised to each partner, with the level for EU products rising to 20% and that for Japanese goods jumping to 24% unless they strike deals to avert or lower the rates. Filkins warned that the longer tariffs remain in place, the fewer small, independent distributors, importers and restaurants there might be. 'The hope is we don't see tariffs to the extent where we're seeing them any longer,' he added. 'Restaurants are, at the end of the day, typically low cash, low margin,' Filkins said. A typical outfit probably runs 'in the single digits in terms of profit margin,' he noted. This means that cutting out 10% to 15% of their profit for wine by the glass, for example, could prove a significant blow. 20%-30% hikes Clyde's sources coffee beans from places like Brazil and Indonesia for its blends, while getting teas from India and China. 'Over the course of the last probably six months, we've seen about a 20% to 30% increase of that cost,' Filkins said. This is partly because suppliers and distributors are not only paying the 10% tariff but forking out more due to exchange rates. Imports from China face a 30% tariff currently even though Washington and Beijing have temporarily lowered tit-for-tat levies on each other's goods. Without a deal, products from Indonesia face a 32% duty come Wednesday, and the rate for India spikes to 26%. 'For liquor, beer and wine, most of the wine we import comes from the EU,' Filkins said, noting the impact is biggest on products from France, Italy, Spain and Portugal so far. Yet, his company is trying to hold off passing on additional costs entirely. 'Consumers are not comfortable spending more in the current climate,' said Filkins. The world's biggest economy has fared well after the Covid-19 pandemic, helped by a solid labour market that allowed consumers to keep spending. However, economic growth has slowed alongside hiring. Economists are monitoring to see if tariffs feed more broadly into inflation this summer, and households become more selective with purchases. With Trump's approach of announcing, adjusting and halting tariffs roiling financial markets and fueling uncertainty – forcing businesses to put investments on hold – Filkins hopes for an easing of levies. 'It's hard for all of us to forecast what's going to happen in the next eight days. 'We can't base all of our decisions on speculation,' said Filkins.