Will Moog Music Outsource Its Production From US Due Of The New Import Taxes?

Will the new US taxes on imports (Chinese circuit boards) be the end of “made in US” for Moog Music Instruments?

In a round mail, Moog Music has informed its customers and newsletter subscribers that there may be big changes in near future. As the company has written the production in the US is in danger. This is mainly because the US is soon introducing a new tax on import and this affects mainly the Chinese circuits boards & associated components. With the onset on this new tax, companies like Moog have to pay 25% more for components for their Synthesizers. This has the logical consequences: the prices for Synthesizers that use Chinese components but are made in US will increase significantly in price.

The companies writes: Moog sources circuit boards from US suppliers whenever possible, paying up to 30% over the price of the same circuit boards made overseas. However, whether they buy circuit boards in the US or overseas, the majority of the raw components still come from China. Therefore, Moog will be unable to avoid this substantial cost increase because of the tariffs.

Moog Music is calling for its community to defends itself against these taxes. It will certainly be interesting what effect this has on the Synthesizer market. Not only companies like Moog work that way but also many small Eurorack manufacturers.

Newsletter

Dear Moog Family, We need your help. A U.S. tariff (import tax) on Chinese circuit boards and associated components is expected to take effect on July 6, 2018. These tariffs will immediately and drastically increase the cost of building our instruments, and have the very real potential of forcing us to lay off workers and could (in a worst case scenario) require us to move some, if not all, of our manufacturing overseas. There is one thing all of us can do together to try and stop this: Write to our elected officials.

You can help here: Moog Music Newsletter

More information here: Moog Music 

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