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Posts Tagged ‘tariffs’

Leica announces 9 Portuguese-made lenses for the US market, bypassing import tariffs

28 Aug

In retaliation for allegedly illegal subsidies from the European Union to Airbus, giving the European airplane manufacturer an unfair advantage over US-based Boeing, the United States levied about $ 7.5B USD in tariffs against the EU. These tariffs, beginning last fall, have been applied to certain EU goods, as approved by the World Trade Organization (WTO).

Included in the new tariff regulations are selected imports from France, Germany, Spain and the United Kingdom, including a 25-percent tariff on ‘agricultural and other products.’ Under the umbrella of ‘other products’ are camera lenses. Leica has long been known for making many of its cameras and lenses in Germany, resulting in US customers being forced to pay more for already expensive Leica lenses.

In order to bypass the US-issued tariff, Leica began work on establishing an alternative production line elsewhere in Europe. Building upon an existing presence in Portugal, Leica will now offer US-based customers nine different M-mount ‘Made in Portugal’ lenses for a reduced cost relative to their tariff-inflated ‘Made in Germany’ equivalents. Customers can still choose to pay extra for the same lenses made in Germany.

The nine lenses Leica is currently manufacturing in Portugal for the US market include the following, with Made in Portugal prices listed first and Made in Germany prices listed second:

• Summicron-M 28mm F2 ASPH (Black) – $ 4,395 (Portugal) – $ 4,895 (Germany)

• Elmarit-M 28mm F2.8 ASPH (Black) – $ 2,295 – $ 2,595

• Summaron-M 28mm F5.6 (Silver) – $ 2,595 – $ 2,895

• Summicron-M 35mm F2 ASPH (Black) – $ 3,295 – $ 3,695

• Summicron-M 35mm F2 ASPH (Silver) – $ 3,495 – $ 3,895

• Summilux-M 50mm F1.4 ASPH (Black) – $ 3,995 – $ 4,395

• Summilux-M 50mm F1.4 ASPH (Silver) – $ 4,195 – $ 4,695

• Summilux-M 50mm F1.4 ASPH (Black-Chrome) – $ 4,595 – $ 5,095

• Summicron-M 50mm F2 (Black) – $ 2,395 – $ 2,695

As you can see, the Made in Portugal lenses do not fully capture the 25 percent tariff levied against the imported German versions, but the relocated production does provide some relief to customers in the US. Presumably Leica incurred considerable cost to their business setting up a new production line. Of this, Leica says, ‘Leica Camera has made a large investment to establish a second production line in reaction to these global economic developments and market requirements.’

Image credit: Leica Store Miami

Leica continues, assuaging the fears of customers that Made in Portugal lenses will be inferior products, ‘With this new production line at Leica Camera’s state-of-the-art facility in Portugal, Leica has decided to offer USA consumers a choice to buy a selection of some of the most popular and essential Leica M-Lenses, stringent to the same quality and standards expected from Leica as our German-made products, Made in Portugal, at a much lower price than their Made in Germany counterparts. The price differential is a direct result of tariffs, and in no way indicative of quality standards.’

If you’d like to learn more about the Leica facility in Portugal, Film and Digital Times published a great tour in 2017.

The nine lenses Made in Portugal lenses Leica has announced will be released in staggered groups. The trio of Leica Summilux-M 50mm F1.4 ASPH lenses will be available this month. In September, the Leica Summicron-M 35mm F2 primes and the Summaron-M 28mm F5.6 will begin shipping. Finally, this December, the final three lenses, the Summicron-M 28mm F2, Summicron-M 50mm F2 and Elmarit-M 28mm F2.8, will become available.

Prospective customers can order any of the nine Portuguese-built lenses from US-based Leica stores, including Leica Store Miami.

Articles: Digital Photography Review (dpreview.com)

 
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Trump’s New Tariffs Could Drive Up the Prices of Cameras and Lenses

08 Aug

The post Trump’s New Tariffs Could Drive Up the Prices of Cameras and Lenses appeared first on Digital Photography School. It was authored by Jaymes Dempsey.

President Donald Trump made waves last week when he announced new tariffs on Chinese goods via Twitter.

Trump writes:

“Our representatives have just returned from China where they had constructive talks having to do with a future Trade Deal…Trade talks are continuing.”

Trump goes on to explain that “the US will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country.”

In other words, certain goods will be taxed before arriving in the US.

For photographers, this is an especially painful blow.

Up to this point, photography equipment had largely managed to avoid any import taxes. But the new 10% tariff will be largely levied on electronics, including computers, phones, and camera gear. And it may cause serious consequences for American consumers of photo equipment.

Image: lucas Favre

lucas Favre

You see, prices of camera products exist in a delicate balance. When the cost to import the gear goes up, prices go up with it, in order to offset the cost paid by resellers. This cost is often felt by consumers.

While companies like Canon, Nikon, and Sony are based in Japan, a significant number of their imaging products are made in China. It’s these products that will be hit by the tariffs, and it’s these products consumers should be worried about.

Trump does promise that his administration will work toward a trade deal with China. However, you should note that these new tariffs follow on the heels of previous tariffs, which left camera gear largely untouched. If the trend continues, things are likely to get worse before they get better.

Of course, this news is only relevant to American readers. Prices in countries other than the US will remain unaffected. But for photography-lovers in America, you may want to purchase any China-made camera gear now, while you can still get it for cheap.

President Trump’s tweet indicates that the new tariffs will come into effect on September 1st.

So pretty soon, prices will be on the rise.

What do you think about the tariffs? Will they stop you buying new camera gear? Let me know in the comments!

The post Trump’s New Tariffs Could Drive Up the Prices of Cameras and Lenses appeared first on Digital Photography School. It was authored by Jaymes Dempsey.


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GoPro moving production of U.S.-bound action cameras out of China, cites concerns over tariffs

11 Dec

GoPro announced today it will be moving camera production out of China for cameras destined for the U.S. market.

In a press release shared this morning, GoPro stated that while its cameras bound for the international market will continue to be made in China, gear destined for the United States will be moved elsewhere by summer 2019, citing concern over the recent tariffs put in place as a part of the trade war that’s been brewing between the U.S. and China.

‘Today’s geopolitical business environment requires agility, and we’re proactively addressing tariff concerns by moving most of our US-bound camera production out of China,’ says Brian McGee, executive vice president and CFO of GoPro in the press release. ‘We believe this diversified approach to production can benefit our business regardless of tariff implications.’

McGee assured consumers and investors alike the move will have little impact on GoPro’s financials, saying ‘It’s important to note that we own our own production equipment while our manufacturing partner provides the facilities, so we expect to make this move at a relatively low cost.’

As of writing this article at 10:10am on Monday, December 10th, 2018, GoPro is priced at $ 4.82 USD per share, down 2.82% on the day on the NASDAQ stock exchange.

Articles: Digital Photography Review (dpreview.com)

 
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