The 25% import tax may force the synth company to go overseas
Julian Marszalek
11:25 2nd July 2018

Employees with legendary synthesizer manufacturer Moog are facing an uncertain future in light of the USA’s tariff on Chinese goods.

The new 25% importation tax is set to take effect on 6 July. The company fears that the increase in price for circuit boards and other Chinese-built components will 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.”

Which kind of goes against US president Donald Trump’s plans of making “America great again”. Trump has long expressed his dissatisfaction with a number of trade deals with overseas trading partners. In 2016, he introduced an economic strategy of "putting America first", saying that he would negotiate "fair, bilateral trade deals that bring jobs and industry back onto American shores."

However, the Chinese are set to hit back for the tariffs slapped on $50bn of Chinese goods exported to the US.

Moog have now asked their supporters to petition elected congressional representatives in their home state of North Carolina and have set up a template letter on their website. The company has been going for over 60 years and is home to 100 employee-owners. Some of their jobs are now under threat.

Part of the letter reads: “Roughly half of the circuit boards and associated components for Moog’s instruments come from China. This tariff would significantly limit their ability to manufacture synthesizers, and could put many of their employee-owners out of a job.

“As an employee-owned company with a 60-year legacy in American manufacturing, Moog constantly strives to keep a balance between domestically- and internationally-sourced parts, so that they can continue employing people from their local community in Asheville, North Carolina.

“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.

“These tariffs will immediately and drastically increase the cost of building Moog instruments, forcing them to lay off American workers and will require Moog to move some, if not all, of their manufacturing overseas.”

Moog’s synthesizers have featured on records made by The Beatles, Stevie Wonder and Michael Jackson as well as bands such as Radiohead.

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