Price Increases Coming From Canon USA
- Thread starter Canon Rumors
- Start date
Blackmagic raised prices already. They had planned to move some production to the US, but recently canceled those plans because the tariffs on the components would end up increasing production costs beyond the savings from import duties on finished cameras. That’s a pretty common theme across multiple business types.
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There were a bunch of comments about this when the initial tariffs were announced... The punters thought that the price increase in the US would only be ~10% as Blackmagic is an Australian company but they didn't realise that the hardware was mostly from Vietnam and China hence subject to massive price increases.
The decision to exempt electronics/phones from the China tariffs was the simple one as doubling the retail price for an iPhone would be very obvious price indicator for US buyers that this is a tax levied on consumers to offset the income tax reductions.
Worst case for the US is taking on more debt because the tax cuts are passed but not offset by the additional tariff income.
Liz Truss held the prime minister role for 44 days and resigned due to market pressures of a big tax cut... the lifespan of a lettuce!
https://www.bbc.com/news/business-63009173
Unfortunately, US electoral processes don't allow this to occur... not that Trump wouldn't ever admit responsibility for markets getting yippy
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The belief that exporting companies would reduce their margin to enable continuing purchases in the US is a fallacy. It may occur in some scenarios but the US public is getting educated/prepared about what a tariff actual means ie an additional tax for US buyers so they know it is happening.
Bilateral trade between China/US will come to a standstill. The assumption that the retaliatory tariffs will keep the trading levels constant to fund the tax cuts won't occur. The assumption that market volatility would lead to a strengthening US dollar to offset the tariffs did not occur.
I'm uncertain whether US residents truly understand the bad will that people outside of the US currently feel. I'm sure that the issues with Canada have been understood best (booing anthem etc) but people around the world are voting with the wallet. Lagging economic metrics may drive the Fed to preemptively increase interest rates (inflation, local buyers sentiment, company revenue and hence profit decreases, etc).
Xi will be able to withstand Chinese dissent much better than America will.
When US troops/police etc are brought in to quell street protests then fascism will be clearly in place.
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If anything, tariffs/trade blocks are likely to be reduced for trade outside of the US to allow new trading partners. Anti-dumping restrictions are the biggest issue for this.
That is possible but unlikely in my opinion.
Moving stock that was US bound to other countries means supply is up but they need demand to increase outside of the US.
All the Japanese camera suppliers have the same issue whether made in Japan or other Asian countries which were hit with particularly high tariffs.
10% is one thing that could be "managed" but you can't avoid 145% or 46% for Vietnam price increases.
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It wasn't addressed in the article. Which is what I said.
Again, this is all speculation. We have no idea what the declared import value of these products are.
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I assume CRguy has a pretty good idea of the margins. He’s been at this a long time, has the contacts, ran a large gear rental house, etc.
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There is some concern about inventory levels. There are some things in the Canon lineup that cannot currently be ordered by Authorized Retailers in the US. Not sure why at the moment.
Sony USA has stopped the ordering of lenses made in China.
Sony USA has stopped the ordering of lenses made in China.
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I remember working camera retail and people not believing how tight the margins were. I would even pull out the order catalog and SHOW people what dealer cost was. Even then.... "well, you get volume discounts!". True, that 1-2% if we filled a stock room really changed the game!
You'd fill the room for the the Christmas season, but payment terms were NET90, so you had better sell a big chunk of it. Then whatever you had left in January? Canon would do instant rebates (usually better than the Christmas rebates on a lot of things), so you'd have to lower the price by whatever the rebate was, then Canon would credit you for HALF the rebate. So they took the already tight margin and smacked it around some more.
Most of the cameras sold would be PowerShot or Rebels, so that $25 margin on a G15 or whatever could become $10. You want a free memory card and bag too? Oh, and Visa took $8 of that $10. Good times.
It hasn't changed.
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After I bought my first DSLR in 2009, I often shopped at a local singleton brick-and-mortar camera store. A few years later, the owner stopped carrying Canon gear, except for the cinema line. I spoke with him about it, and he said he just couldn’t make the narrow margins on the more consumer-oriented stuff work for him. He said that Nikon wasn’t as bad, but Canon screwed him on every sale.
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It was Liberation Day! Don’t you feel liberated?Is this the promised dawning of the "Golden Age"?
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Didn’t we just learn (with no surprise) that Marjorie Taylor Greene bought massive amounts of stock just prior to the suspension of the tariffs?
She just neglected to do it through hidden channels…
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The margin between the "wholesaler" which in this case is Canon USA and the retailer which is anybody from B&H to Canon USA is reasonably easy to work out if you know the right people. The declared import value is almost impossible to ascertain unless you're in the accounting department of Canon USA or US Customs.
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