Moog Synthesizer company says Trump's China tariffs will hurt business
This post is not directly related to music technology (sorry about that) but it does go to show with economics when you adjust one variable there is a cause and effect relationship and the big thing is to carefully consider what sort of an effect there is in a global economy.
In this case, it is now proudly US made music tech that is also feeling the effects. The effect was seen in reverse years ago when earnings taxes were cheaper outside the US and Microsoft, Apple, etc established headquarters outside the USA to declare their earnings. When import duties go up a similar effect is seen a global economy where it will be cheaper for you to direct your raw material to, and manufacture, in a foreign country especially when you are selling worldwide outside of the USA.
It's certainly good news for other countries who will increase manufacturing outputs and of course employ more people as a result.
There is no need to bring politics into it as it goes the same for any other country (the factors being more or less the same) and it just boils down to plain economics. The nice thing is that the economy "judges" you ultimately as investment/employment just flow wherever the business is. Most capitalist companies are going to seek to maximise profits and multi-nationals will do that where it makes the most business sense. Is there any country in the world today which does not trade with other countries?
See https://mashable.com/2018/07/02/trump-china-tariffs-moog-synthesizers/
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Trump tariffs are coming for the dance world’s synthesizers This has gone too far! |