How will new tariff impact Festool pricing?

[crampedshop]

I just heard that tools coming from China, not Taiwan, will be bumped 25%. I assume that this tariff war will bump up Festool pricing to those of us in the US.

 

[deepcreek]

Pretty sure the majority of Festools are still made in Germany.  I'd hate to learn otherwise.

 

[JFelchlin]

“NEW TARIFFS”???
Festool’s been “jackin’ up the ante” on products in North America -
5% every April - For years - With NO CHANGES to many of the products.

I’ve been constructing an Excel spreadsheet list of my Festool purchases -
Comparing my Festool PURCHASE PRICES with REPLACEMENT COSTS (for insurance purposes).
AVERAGE INCREASE = 34%
With Festool’s relentless annual price increases - “TARIFFS” -
If I wanted to sell (I don’t) my USED (unimproved by Festool) MFT/3, Domino 500 and 700 Joiners, 1080/1400/3000mm Guide Rails, LR 32-SYS/Holey Rail, HL 850 Planer, etc. -
At 70% of Festool’s 2018 prices - I could actually MAKE A PROFIT on ‘em.[eek]
“What’s wrong with this ‘picture’?” [unsure]

 

[semenza]

Please keep this out of politics. But somehow I feel that will be impossible.

Seth

 

[ChuckM]

I must confess I have been a beneficiary of Festool "tariff" policy because I recouped a lot from the resale of my used Festool products. It is good news for existing owners, but not so much for people considering to buy.

I am least concerned about any tariffs on woodworking tools because I have all the tools I need and if any new hand tools are needed, they are Canada made from Veritas which won't be subject to any tariff.

 

[Cheese]

Well with Starrett having already stepped forward and with Harley and General Motors having raised their hands, can Festool be far behind? I fear not.  [crying]

June 1, 2018

Subject: Section 232 Steel Tariffs – June 1, 2018 – Imported Steel
Re: June 8th Effective Surcharge Ground Flat Stock and Drill Rod

The U. S. Government has imposed a 25% duty on steel imported from the European Union effective June 1, 2018. This action will have a significant impact to our cost and, as a result, we will implement an immediate material(s) surcharge.

Without additional notice or exception, effective with the start of business June 8, 2018, The Company shall add a surcharge to all ground flat stock and drill rod of: 10%.

We appreciate your understanding during this unsettled period and we thank you for your continued business.

The L.S. Starrett Company
121 Crescent Street | Athol, MA 01331 - USA
Phone: (978) 249-3551 | Fax: (978) 249-8495

 

[live4ever]

they are Canada made from Veritas which won't be subject to any tariff.

Yet.

 

[Stephen B]

they are Canada made from Veritas which won't be subject to any tariff.

Yet.

[size=13pt]
It is my understanding that Canada in the last 48hrs has placed tariffs on some US imports in retaliation for US Tarrifs. Europe is already in a trade, if not political war with the US, so I would expect/predict that Festool would in the near future be impacted by any tarrifs designed to protect US tool manufacturers such as DeWalt and Stanley.

 

[peter halle]

I doubt there will be any impact on consumer pricing.

Peter

 

[Wooden Skye]

My opinion is almost all companies that make goods will see this as an opportunity to raise prices and blame the tariffs.  If and when they end, we will have gotten used to the higher prices, companies probably won't rollback the increases.

 

[RKA]

First, there is no reason to believe the US will imposes taxes on tools coming from the EU.  WRT to the EU, their focus is protecting domestic steel and aluminum production.  They are also looking at cars imported from the EU, but that may just be posturing at this point.  All these items have one thing in common.  Hundreds of millions to billions of dollars. Even if this escalates, EU tools aren’t a big enough card to play. 

China is another matter, they export much more to the US, so in addition to steel and aluminum they were able to identify broad categories of other items that would amount to billions.  And frankly, China is in the administrations crosshairs for reasons we don’t need to discuss.

As for Harley, their brand is iconic all over the world, this trade war could hurt them, however, the people that buy a Harley overseas aren’t likely to be influenced significantly by more tariffs.  It’s a luxury good often purchased by well heeled people.  On the other hand, discovering their new prize was assembled in a Thai factory may have a big impact on their decision to buy an American made icon.  My feeling is they don’t want to do it and this is the only way they could make a point and be heard. At the end of the day, I’m sure they would prefer to continue manufacturing in the US.

So don’t worry about your Festools, they will only be subject to the annual increases you’re accustomed to.  [tongue]

 

[semenza]

Political post removed. As predicted this topic is going no where good.

Seth