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Moog Says Trump Tariffs Could Force Layoffs, Factory Move - Magnetic Magazine

Trade War Troubles: Moog Says Tariffs Could Force Layoffs, Factory Move

The company says increased cost of production would force them to make hard financial decisions.
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Minimoog Model D App

If you have managed to keep up with the U.S. news cycle (I am impressed), you would be aware of the escalating trade war President Trump is ratcheting up with anyone he seems to be able to find on a globe, no matter if they are friend, foe or rival. This has put a lot of different products in the crossfire of higher tariffs, and thus prices, such as soy beans, cars, whisky, ketchup and now even synths. In a statement today, Moog has announced that in the face of tariffs by the Trump administration on crucial parts from China, they may have to layoff workers or even move their factory in a worst case scenario.

In the statement, the synth maker urges people to reach out to their representatives to speak out against the tariffs. They say there is a "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."

Moog makes their synths here in the United States, but sources some of its parts from overseas. The parts in question are circuit boards, which would increase in price with the tariffs. They claim that domestic circuit boards cost up to 30% more. No matter if they switch to domestic suppliers, most of the raw components come from China, so the price would still go up Moog.

We will see if these tariffs go into effect and impact the price of synths, but nobody is keen on paying more for hardware. 

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