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Tariffs affecting parts for synthesizers
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cappy2112



Joined: Dec 24, 2004
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PostPosted: Tue Jul 03, 2018 9:26 am    Post subject: Tariffs affecting parts for synthesizers Reply with quote  Mark this post and the followings unread

https://www.npr.org/2018/07/02/625363659/moog-says-chinese-tariffs-may-force-a-move-overseas[/url]
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elmegil



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PostPosted: Thu Jul 05, 2018 10:58 pm    Post subject: Reply with quote  Mark this post and the followings unread

Not clear if Moog is just exaggerating for political effect, or the CEO is positioning to move operations overseas, or they're operating on bad information.

Paul Schreiber of Synthesis Technology, whose professional career has included training to understand and experience working with the tariff schedules, has posted an analysis on facebook in several parts that basically says: pots and resistors and capacitors will be affected. Chips will not. PCBs and PCB assemblies should not -- there is an exemption for musical instruments. If for some reason Moog is working with a shipping aggregator or factory who isn't marking their stuff with the correct tariff type codes, they could be badly affected, but the solution is to correct the shipments.

In short: they have some costs that will go up. Those costs shouldn't come anywhere near 25% of their entire operating cost, if they're doing their due diligence correctly.

None of this means, of course, that the tariffs and the brewing trade war are a good thing, or that I'm defending them in any way. But it doesn't help the cause to make inflated claims.
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