The photo industry was facing multiple challenges even before Donald Trump took the oath as President of the United States. However, one could say the trouble, which has been recently brewing, is a direct result of his “reckless” trading war. Soon after the retaliatory tariffs were announced earlier this month, Trump changed his mind and announced a 90-day pause on the war for some countries, except China. And now, it appears that Fujifilm and Canon are reportedly going to increase prices as a result of the tariffs.
In a report by Photo Rumors, a source close to Fujifilm has confirmed that the company has suspended orders for the GFX100RF, X100VI, and X-M5 cameras in America. The company is likely to implement the price hike proposed by Trump, which at the moment is 10% in various countries, including Japan, Thailand, EU, Vietnam, and Malaysia. China, on the other hand, now faces a hike of 145%, which is higher than the original 125%, which was announced after China put 84% tariffs on American imports in its country. However, things are now more tense, especially since China is refusing to back down. It must also be remembered that Fujifilm has its production units in both Japan and China, but it remains unclear how much of an increase the company will suggest. There is also no news about it affecting the company’s entire portfolio or just suspended items.
In another article, Photo Rumors also believes that Leica is also likely to announce price hikes. Again, the report doesn’t delve into much detail about how; it just says we will see the results in a week. Leica has its production units in Portugal and Germany, with the EU originally facing a 20% tariff increase, which is now to a standard 10% across varied countries (except China). Even with a 10% tariff, a Leica M11-P, which is now $8,854, can cost about $9739.
In another report by Canon Rumors, it appears Canon is also going to increase prices across its entire portfolio due to the trade wars. This does not include cameras and lenses but also semiconductors. At the moment, it is unclear how much the prices will rise on the existing MRP, but the changes are expected to occur in another two weeks or so. At the same time, it is also unclear if the prices will affect only the USA alone or other countries around the world. Although there is only a 10% increase in tariffs from Japa, the EU supply chain cost is likely to impact the camera prices outside America.
While Trump announced that phones, chips, and laptops would not be included in the reciprocal tariffs in China, the President threatened to cancel this relief on Monday. Per the Harmonized Tariff Schedule, which has TV cameras and digital and video cameras on the list, it is not the same as laptop chips and phones. So, unless the American authority chooses to make cameras an exception, the photo industry will continue to remain exposed to the tariffs. This means if Trump chooses to go ahead with the 145% tariff in the coming months, camera manufacturers have no other option but to oblige. And, perhaps, see and move their plants to other countries that have lesser tariffs.
At the same time, the use of the International Emergency Economic Powers Act (IEEPA) for tariffs has also raised legal uncertainties. Some believe the act is being misused, as it was designed for war. Thus, it is likely to impact the tariff’s validity today when the countries are somewhat peacefully coexisting. So, we aren’t sure how long this game of threat continue and how many changes are we to expect.
In addition, if Canon and Fujifilm are going ahead with this, we may see, Sony, Nikon, Panasonic, and OM System also undergo something similar soon. It also remains to be seen whether Leica and Hasselblad announce the same changes, since the EU also faces a 10% tariff despite the pause on the original 20% tariffs.
