Trump Tariffs
These days there is a lot of talk about how the Trump tariffs will impact the camera industry.
Some make more educated reasoning, others just use Chat GPT to fake themselves expert in this sector writing articles that contradict themselves.
Of course I have received lots of questions on how Fujifilm is going to react on tariffs, but I am not sitting in the Fujifilm HQ in Toyko, so I have no idea how they are preparing for it.
What I know, though, is that Fujifilm has mainly factories in China (34% tariffs), Japan (24% tariffs) and the Philippines (34% tariffs).
The factory in the Philippines is used for certain X series lens manufacturing, whereas Japan and China produce both, lenses and cameras.
Fujifilm Strategies
Fujifilm could try to move as much of the manufacturing to Japan as possible, to be subject to “only” 24% of import taxes rather than 34% of China and the Philippines.
But other than that, there is not that much Fujifilm can do (except for a very audacious move I’ll explain below).
And it remains a big question if Fujifilm will now make massive investments to move the entire manufacturing to USA.
Even Trump Tariffs Supporters Say: Pain is Coming
Now, FujiRumors is not the place for any political talk. I know some of you might consider this a brilliant move by Trump, others a very bad idea.
But whatever your idea is, there seems to be a consensus that there will be a moment of “pain” for consumers.
Trump supporters say “short term pain for long term gain“, and Trump foes will say the pain is here to stay for a long time.
But both agree: a period of pain is coming.
And pain, for consumers, means one thing only: prices will get higher!
How high?
That’s hard to say.
The tariffs probably do not apply to the final retail price, but more likely to the import price of goods. So if we buy a camera for $1,500, but it gets imported at $1,000, the 24% or 34% tariff will be applied to the $1,000 (at least that’s my understanding).
That’s still a hefty price increase, though.
Global Cost Redistribution
What Fujifilm could do (just an radical idea of mine), is to introduce what could be called “global cost redistribution“. So instead of raising prices by 24-34% only in USA (a crucial market for Fujifilm), they could let’s say increase prices by 7% only, but globally.
It would be a fairly contained price increase and protect the very important US market and at the same time marginally affect other markets.
Sure, the risk is to alienate customers and dealers in Europe and Asia, who will feel unfairly penalized for a US policy decision.
Maybe Fujifilm could have a more hybrid approach, so add a 15% increase to US products, and a 5% increase only at other markets.
Should You Buy Now?
But whatever is going to happen, a price increase (short or long term) is very likely to happen even according to the most fervent supporters of Trump tariffs.
So should you buy gear now?
Well, if you were considering to buy some gear anyway, then by purchasing now you’ll make sure to escape the very likely to happen price increases coming in the near future.
And if you do so, feel free to support FujiRumors by using our affiliate links.
What Would FujiRumors Do?
What will I do?
Well, the one gear I am REALLY interested in is not yet available (but will be soon). So I have no other choice than to wait and whatever the price will be, get it at that price.
But if I was located in USA and considering to purchase certain gear, I’d proceed and get it to secure it at the current price.
And once prices increase (which will happen even according to Trump supporters), second hand prices will go up too, just in case you want to resell your gear.
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