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Upcoming Tariff on Euro Guns

13K views 243 replies 58 participants last post by  Steve Y  
#1 ·
Currently there is a 20% tariff going into effect on Italian guns beginning on July 15. Do you think that manufacturers will pass this along with a 20% price increase. Should we buy while we can at the current price.
 
#3 ·
Manufacturers won't but importers might. The tariff is paid when a good reaches the shores of the US not when it leaves the manufacturer. Someone will have to absorb the cost so it either will be passed straight thru to the customer or partly so. It'd be very difficult to see a scenario where the importer eats all of the cost increase. Also, this is assuming it actually goes into effect.

I'm glad my new FAIR 28ga came a couple weeks ago from Italy....
 
#6 ·
Krieghoff just raised their prices 10% and the upcoming tariff for German guns is 10%. It might be because of the tariff or because Krieghoff had become the cheapest of the three Krieghoff, Kolar and Perazzi guns and they didn't like being the cheapy.
 
#9 ·
I had ordered my FAIR in January and was worried that they might try to increase the price on me (just didn't know what to expect) if tariffs had gone into effect. In thought it would be bad for business and likely they would not raise prices on something already ordered (only paid 20% down though), but who knows in this climate...
 
#17 ·
Yes, but if there is low demand in 6 months they may put items “on sale” at their old pre tariff price. That also happens with regular MSRP / MAP increases, existing inventory gets marked up to the new price, otherwise you would have different prices for the same item on the rack.
 
#15 ·
It's a zero sum game. Mfg/importer/dealer can raise the price and hope it won't impact sales, or they can eat the increase and take less profit but maintain volume. I'd rather get half of something than all of nothing. It also directly pits mfg against mfg, the one that eats the tariff will almost certainly see increased sales. No gun mfg/importer/dealer is operating on razor thin margins.
 
#33 ·
Well, I guess they don’t sell the $50k guns quickly, but <$30k guns move. I like to ogle the engraved Krieghoffs on Paxton’s website and the inventory certainly changes.
Over the last 10 years the world luxury markets have done very well and they will continue to do so. There has been an increase in the number of multi million dollar homes being bought with cash. If you can plunk down $5,000,000 in cash for your home an SC3 sporter is not a big deal.
 
#34 ·
I would think that if the retailers raise the price of their guns due to tariffs, real or imagined, and they don't sell, then the manufactures won't have subsequent orders. I seem to recall it is called supply and demand. Eventually somehow something will give. I know what I will pay and I know how pleased I will be to stick with what I currently have.

We live in interesting times.

s/f. Steve
 
#35 ·
Currently there is a 20% tariff going into effect on Italian guns beginning on July 15.
Not so. BRUSSELS, July 7 (Reuters) - The European Union will not receive a letter from the United States setting out higher tariffs, EU sources familiar with the matter told Reuters on Monday, and is eyeing possible exemptions from the U.S. baseline levy of 10%.
 
#37 ·
My local trap, skeet, and sporting clays range is also a very large Guerini dealer as well as carrying Krieghoff, Browning, Benelli, Beretta, and others.

I was looking for a Guerini about two months ago. I asked if the tariffs had taken effect and his reply was “ He had been told by Guerini the tariff increase was already being implemented. He said his response to Guerini was to tell them not to send him any more guns until he notified them otherwise.“

The gun shop owner further stated he thought the tariff might be lifted at some point in the future and he didn’t want to be stuck with guns in inventory that were higher cost. 🤔
 
#38 ·
The gun shop owner further stated he thought the tariff might be lifted at some point in the future and he didn’t want to be stuck with guns in inventory that were higher cost. 🤔
Yeah that would be a real risk for a stocking dealer. I wonder how many will sit on the sideline until this levels out. Or maybe just order only after customer purchases.
 
#40 ·
If you were them, wouldn't you?
 
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#48 ·
The only likely suspect is RemArms- if they ever get their act together.

And if some form of the tariff on Japanese goods announced yesterday actually goes into effect it could provide an impetus for Henry to start making a semi auto. Maybe Henry could buy the 1100 and V3 lines from RemArms at a fire sale price.
 
#45 ·
Who knows what the EU tariffs on US goods is? It's high. The tariffs levied against EU countries where originally set at half what the EU was charging on goods imported from the US. On top of that a 20% VAT tax is added to products coming in even though the EU added no value to the product. I got bit by this a number of years back. Sent a wedding gift over and had to pay the VAT (didn't want the person getting married to pay it). That stung.
 
#59 ·
Who knows what the EU tariffs on US goods is? It's high. The tariffs levied against EU countries where originally set at half what the EU was charging on goods imported from the US.
If you mean the proposed tariff rates set on "Liberation Day", they weren't set based on what other countries' tariffs were on us. They were set at half of the percent trade surplus--not half of what other countries traiffs were on us:



"...take the trade deficit for the US in goods with a particular country, divide that by the total goods imports from that country and then divide that number by two.
For example, the US buys more goods from China than it sells to them - there is a goods deficit of $295bn. The total amount of goods it buys from China is $440bn.

Dividing 295 by 440 gets you to 67% and you divide that by two and round up. Therefore the tariff imposed on China is 34%.

Similarly, when it applied to the EU, the White House's formula resulted in a 20% tariff."

More links including a youtube video breakdown:

 
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