Tariff-Proof Audiophile Products Poised to Take Major Market Share Gains as Some Audiophile Companies Fully Panic

Spring is audiophile show season, and there is no one bigger, more pressing, scarier topic than American tariffs to most audiophile companies. I’ve spoken to well over 100 audiophile companies at AXPONA in Chicago this April, as well as to many slightly more international companies at Munich HIFI 2025 in mid-May, 2025, and the one thing that most are worried about is the effect of looming tariffs and their effect on the audiophile market. 

Ask any financial exper,t and they will tell you that the one thing that markets hate is instability. By taking a sledgehammer to the concept of economic globalization, the current administration has thrown the current global economy into freefall by its hyperbolic and impulsive threats of massive tariffs. Has pausing said threatened tariffs helped? Perhaps that is the case in the short term, but that can’t put the bullet back in the .44 Magnum that blew our economic foot off. And some less enlightened audiophile companies are in full, unabashed panic mode. One now-former client was so upset at AXPONA about losing $100,000 in export business that they wouldn’t take my credit card to buy $30,000 worth of electronics that I needed for my system. That is a company in total panic mode and, yes, we lost the client out of total fear and panic. 

What Will a $1,000 Audiophile Subwoofer Cost with Full Tariffs?

A well-known speaker manufacturer with excellent distribution in the United States, as well as worldwide, makes their subwoofers in China – like pretty much everybody else. One of the best, most colorful models sells for a retail price of $1,000 today. We’ve been having an ongoing conversation about what said $1,000 subwoofer will cost if 145 percent tariffs become real, versus them just being more blustery but meaningless acts from an economic bully. 

The very bright and experienced president of this audiophile company did the math for me on what a Chinese-made subwoofer from a company that designs speakers in the United States (with American designers, American staff and so on) would cost. As speaker impresario and co-founder of Polk Audio and Definitive Technology, as well as GoldenEar Technologies, Sandy Gross explained at dinner during Capital Audiofest in Bethesda, Maryland last fall that the tariff (thought to be upwards of 50 percent, not 145 percent at the time) doesn’t cover the whole future price of a component. Yes, there is the tariff (let’s call it what it is – a consumer tax because that’s who pays – not China – the American consumer), but there are also the manufacturer’s margins, which are needed to stay in business. That makes for audiophile products that are more than double the cost overnight, with 100 percent of the delta in cost to be paid by the American consumer. 

At 145 percent tariff/tax on said $1,000 subwoofer, the president of this speaker company estimates that the retail price of the exact same subwoofer will be $2,250!!! 

Price increases like this add no value to the product, and push most of the cost-minded customers right out of the market. A $2,250 audiophile subwoofer client is a very different consumer than the $1,000 one – especially when you don’t get anything extra for doubling down on your money. 

Audiophile Gear is a Luxury Goods Purchase, Not an Inelastic Demand One

Few audiophiles “need” that next component upgrade, but everybody needs, say, home or renter’s insurance. In my world, we are being absolutely screwed and tattooed by State Farm after the Palisades Fire. Unlike USAA and The Hartford, which paid my other fire-related claims in about 30 days, State Farm is refusing to pay our claim of well over $600,000 to restore and abate the professionally measured (and paid for by me to the tune of $10,000) toxicity in our home. But State Farm’s lust for profit while boldly misrepresenting themselves as a “good neighbor” has hoodwinked the elected California Insurance Commissioner, Mr. Lara, to just give State Farm a 17 percent rate increase. As the only non-Fair Plan (the basically bankrupt state insurance that was created after the Watts riots in the 1960s) insurer in California that will write a policy in our area, State Farm wasn’t happy with 17 percent increases across the state. Literally, the next day, they demanded an increase of 11 percent more from Mr. Lara. They likely will get the price increase, too, while every other reputable insurance company (like USAA and The Hartford, which actually pay their claims) stay out of a market that is actually the fourth-largest economy in the world aka: California. Who can blame these more reputable insurance firms, as they can’t charge what they need to in order to be profitable, thus leaving State Farm with basically a monopoly? Hell, State Farm was dropping each and every client in our zip code in 2025. We were to be dropped two weeks after the January 7, 2025, Palisades Fire. 

While we all are a bit addicted to the buzz that comes from system upgrades, nobody actually “needs” that new audiophile streamer or a gleaming new tube preamp. We don’t need it – we just want it. Compare the demand for a product like your homeowner’s insurance (something that you can’t live without if you have a mortgage or tenants), we all have no choice but to pay – especially with no legitimate options left in the market. The fact is that prices in the audiophile world have been going up and up since COVID. Have you seen any come back down in recent years for any reason? Me either.

Is there such a thing as a Tariff-Proof Audiophile Company?

Believe it or not, the answer is yes. Look at New Jersey-based, legendary audiophile turntable manufacturer VPI. Their leader is Mat Westfield, the young executive who runs the forward-thinking company. Mat tells Future Audiophile that of the more than one dozen audiophile components that they make, only one of them has one part not made in the United States. That is a motor from Israel, but everything else needed to build a VPI turntable is most unlikely to be hit with tariff expenses. Mat’s clients call in asking about pending price increases and they seem shocked when they learn that prices at VPI are not going up. 

Two years ago, I visited Boulder Amplifiers in Colorado, and I was impressed with their factory, their computer board assembly, their in-house metal work and more. Pretty much the only thing not made in-house at Boulder is their anodized metal (still done locally), and nobody in our business does their own anodizing as the process is too messy, needs EPA oversight and so on. Logan Rosencrans from Boulder sagely smirked when asked about being tariff-proof while exhibiting at the recent Munich HIFI Show. He knew their competitive advantage, as other companies might be hit with double (or higher) retail prices that will make Boulder even more tempting for the very-well-heeled audiophile inspired to buy their products over others. 

The list of companies that might not get crushed by tariff/taxes has other notable names. Audio Research, McIntosh, Nordost, Wilson Audio, YG Acoustics, Magnepan and more come to mind. Share with us your list in the comments below, as there are likely many more that we haven’t thought of. 

Prices Never Seem to Come Down, Do They?

During the COVID-19 pandemic, prices went up and up on so many items – including audiophile components. Supply chain issues caused product shortages throughout our industry, which led to price increases. How many prices have you seen come down since then? Not many, right? 

During the first term of this American President, there were tariffs placed on washers, dryers and dishwashers from overseas in 2018. The Biden administration foolishly continued these tariffs until 2023, when they expired. Did this make American-made appliances more appealing? Nope. That’s because the American brands chose to make the forced price increases an excuse to increase their profit margins. There are some who suggest that appliance costs have returned to 2018 levels, and to that I say bullshit. Because of the Palisades Fire, we need all-new kitchen appliances. Sub-zero fridges are more money than ever ($14,000!!!), where other, more competitive brands like Liebherr from Germany are now pounded with tariffs and/or preemptive price increases. Literally every product that we shopped for at the appliance store has a tariff/tax conversation as to determine real-world 2025 value in the marketplace today. 

Are American-made products better than stuff made in other parts of the world? That’s not a rule by any means. If you want the best washer and dryer, look to Korean-made LG. I’ve owned a few versions of Maytag Commercial washers and dryers, and I will never buy one again at any price. These made-in-America appliances are total garbage in the modern era. Don’t just ask me, ask an appliance repairman. The “Maytag Repairman” died from a brutal stroke on Madison Avenue long ago because the Korean-made appliances are less money, more reliable, and often use less water and energy. Simply put, the Korean product is the more high-performance, more reliable product, and they are about to cost a whole hell of a lot more to purchase. Take that, Mr. and Mrs. Consumer. 

Is It Even Possible to Make Audiophile Speakers in the United States?

Yes, of course, you can make high-end speakers in the United States, but they are expensive. Wilson and YG come to mind, but there are many others. Bowers & Wilkins, for example, makes their reference 800 Series speakers in England and, trust me, they are exquisite, but the rest of their lauded line is made in China, so expect the prices of a 600 or 700 Series Bowers & Wilkins speaker to go up roughly 100 percent if the leader of the free world doesn’t back off of his tariff model. 

Could less-than-reference-level speakers be made in the United States? 

This is where the situation gets a little sticky. We live in a globalized economy in the United States, and we are used to consuming high-value, high-performance goods made from all over the world. For the past 25 years, audiophile speakers are made in places like China. Many of the most popular, more mainstream preamps and AV receivers are often made in Vietnam. Could there be a factory built to make speakers in the States? Sure – just as we are building seven new giga-factories to make the world’s best semiconductors. Here’s the problem. It takes time to build said factories, be they for speaker or semiconductors, and time isn’t something that this administration allows manufacturing in this country.

Most audiophiles don’t know who Morris Kessler is, but they likely know his brands and perhaps his legacy. Morris is a man who knows how to make one hell of an amplifier. He owns brands like Theta Digital, API, SAE and others. He and his team, up until recently, made amplifiers on an assembly line in East Los Angeles for all sorts of companies, ranging from Integra to Crestron to Mark Levinson to Theta to API to Outlaw Audio to Monoprice. So why can’t we just give Morris all of the business and make audiophile amplifiers in the United States? Well, that’s because Morris, at his age (likely at least 80 at this point), sold the gigantic storage facility in East L.A. a year or two ago. So, where are you going to go now if you want to make a power amp or mainstream electronics here? Mexico? Canada? Nope. There are few options for American audiophile companies that didn’t have this base covered, while there is little to no government money or aid to help bring these manufacturing jobs back from overseas. 

Wildly Rising Metal Costs Put Audiophile Companies Into Full Panic Mode

One company that I met with in Munich put their entire marketing efforts on hold to see what the President of the United States does with tariffs by the fall. They get their aluminum from China, and those imported parts will make for massive tariffs, thus massive price increases. 

Another electronics company that plays in the Class-D amp world has seen their pre-made metal work from China go from $125 per chassis to $900. That type of price increase must be passed on to the consumer, while the consumer gets nothing more for his or her extra money. 

Final Thoughts on Tariffs in the Audiophile World …

A recession is loosely defined as one to two quarters of negative economic growth. We have not yet hit that level yet in 2025, but it sure seems like we are heading there. Without question, recessions suck, and for 17 years we haven’t experienced one on our shores. Millennials gripe about workplace issues, but how many of them were around 17 years ago to experience the 2008 real estate crisis? The answer is: very few of them, just because of the fact that the American economy has been booming for nearly two decades, which is an abnormally long period of time without an economic recession. 

Recessions aren’t all bad, however. Recessions are an opportunity for companies to grow their market share. Look at the companies that are tariff-proof – they can gain market share in ways that others cannot. Companies that market effectively can grow their customer base and prepare for the next growth cycle.

What’s so painful is that there was literally no need to pick these battles, not just with China or a war criminal like Russia, but with our closest allies. Relations with Canada and Mexico will never be the same because of the actions of this administration. Nobody imported more of our agriculture than Canada and, right now, they are working to grow their own. Forget the Central Valley in California – Canada is looking at ways to grow crops in greenhouses. When we put tariffs on soybeans, China ate up our market share while we were left handing out government subsidies to our farmers because of politics. 

One economic truism is that for every trade in the market – there a winner and a loser. Ask anybody running an audiophile company: regardless of political affiliation, this moronic tariff experiment will leave permanent damage economically and politically with our closest allies, with consumers paying perpetually higher prices. How that is a good thing is hard to see … 

In the audiophile market, there will be companies that don’t make it and others that will creatively find ways to thrive. The term “Shrinkflation” became popular during the pandemic, when you got fewer Cool Ranch Doritos for your snack money. How does that concept make anything in your world better – especially your audiophile system? Less for the same amount of money is still a loss, but that seems to be where our TACO leader is going, because even if/when he “chickens out” like the bully that he is – the damage is already done. Our allies have changed their view of the United States as an economic leader and those relationships will never be the same again. Nor will prices, which, as we all know, never go back down in any meaningful way. For the 902 actual reported billionaires in the United States, who cares, right? But for you and I, how do you justify that bid for new carpet today at $52,000 when the same exact volume of premium carpet cost $14,000 during COVID? You say, use American-made carpet from Georgia. We did. They raised their prices, too, just like the American appliance manufacturers did in 2018. 

How have you been impacted by the tariffs – be it in the audiophile world or elsewhere? Has it impacted your buying decisions? Are you popping for things now that you might need before prices go up? Are there inelastic products that have gone up that are causing you pain? Share with us your take on the matter and we will publish your comments.