The recent tariffs imposed by the United States government have already begun to impact the piano business. Yamaha has announced a price increase on all their products, Roland announced that they will no longer include a bench with their pianos and companies like Casio (who build nearly everything they sell in China and are currently facing a disastrous 145% tariff) have fallen silent. Even American piano makers are being affected!
…but how long will these tariffs last? How will they affect piano prices? Which piano builders are well-positioned to “weather the storm” and which companies could be facing oblivion?
Let’s take a detailed look at what may happen as the trade war rages on and what you can do to protect yourself and your musical family.
Domestic Piano Manufacturing
Bubinga is a popular choice for exotic wood finishes… but it comes from Western Africa. It cannot grow in the United States.
Will US tariffs encourage piano builders to make their instruments in the US again? In short, the answer is no. Even a piano that is “made in the USA” is not made entirely from materials sourced in the United States. Woods for the piano’s construction may come from many different countries – especially if a certain species of wood is required for a specific function or if the wood is used in exotic finishes. Alaskan Sitka spruce is one of the best woods for making piano soundboards, but it’s also one of the most expensive. To keep prices down, many modern piano builders buy soundboard wood from Canada, Europe, and Asia. It’s the same with piano keys actions, case parts and much more. So, if US tariffs artificially inflate the prices of foreign wood and force US piano builders to buy locally, they will have to increase their prices and eliminate select finishes like rosewood and bubinga – which typically come from overseas. Even then, there are some components they just can’t get in the United States. Today’s piano business is a global one. No matter how you look at it, even American piano manufacturers will have to pay higher prices for parts and materials as a result of these tariffs. They will also be facing higher prices for transporting or shipping as the tariffs cause inevitable supply chain issues. …and that doesn’t even address the issue of skilled labor. Building pianos requires years of experience. It would take years to setup a new factory in the US, buy all the equipment and materials you need, train your staff and begin building pianos in the USA. That – and the fact that Americans buy fewer and fewer pianos each year – is why tariffs will not bring piano manufacturing back to the US. It’s not going to happen.
How will Tariffs Affect Piano Pricing?
The implications of these tariffs for the US musical instrument market are straightforward – It will have less impact on luxury instruments like Bosendorfer and Yamaha’s SX-Series Pianos, but will significantly increase prices for beginner and entry-level models. Low price pianos are almost exclusively made in China and are precisely the models the piano instrument industry relies on to create its future consumer base. Most piano shoppers start with a less expensive piano and upgrade as their student improves. …but what if less expensive pianos aren’t available anymore? Will fewer people take lessons because they can’t afford a piano?
Steinway’s Essex pianos are built in China by Pearl River. Chinese pianos are now subject to an unprecedented 145% tariff.
Products coming to the US from China are now subject to an astonishing 145% tariff. Worse yet, this is happening just after the Chinese government issued a mandate forbidding private musical instrument instruction. Overnight, an entire industry of private piano teachers disappeared and Chinese piano sales dropped like a rock. Now, we’re already seeing dozens of small Chinese piano makers close up shop and it’s inevitable that we’ll see more. Worse yet, many of the survivors will stop importing into the US. This will likely cripple the low-price piano market here in the US. Not only will entry (and mid-level) pianos be less affordable but they may be impossible for Americans to purchase at all!
What if new upright pianos were to start between $5000 and $6000? What if grand pianos under $15,000 were a thing of the past? I can foresee a time in the near future where the least expensive baby grand from a major manufacturer will START at $20,000… and that could doom the entire piano business.
Which Piano Builders Will Survive?
Pianos made in Europe and Japan are set to see tariffs in the 10-20% range which will definitely affect pricing here in the US. Large, well-established companies like Yamaha have a strong relationship with the majority of professional musicians worldwide. This, along with Yamaha’s vertical integration, proprietary technology, and 125+ year experience building pianos around the world, will ensure that they survive whatever comes along. This also goes for Bosendorfer – the oldest continuously operating piano manufacturer in existence and, arguably, the best piano made on Earth. Their ties to Yamaha, their affluent client base, and global prestige will protect them from most of the trade war fallout. That isn’t to say the tariffs won’t hurt their business, but they are likely to survive the crisis.
Other piano builders may not be so lucky.
Beloved companies like Baldwin, who build their pianos in China and Indonesia, are facing a crisis that could drive them out of business. Kawai, who builds most of their pianos in Indonesia and Japan, will have to make major changes to survive. All of the major Chinese pianos, including Steinway’s Essex, Schimmel, Pearl River, Hailun, George Steck, Brodmann, A Geyer, Grotrian and many more face a bleak future should these tariffs continue.
How Long Will the Piano Tariffs Last?
Pop Artist, Ben Folds, plays a Baldwin grand piano.
The US-China trade war began in 2018 and it shows no sign of ending in the near future. Some experts suggest it could be four to five years before the two sides are able to negotiate a favorable outcome. Sadly, that will destroy entire segments of the piano business and force most first-time buyers to buy digital pianos or less attractive used pianos (while supplies last). It could mean the end of some of our favorite piano brands. Of course, this doesn’t have to go on forever. If both governments commit to solving this problem, it could be over in a matter of weeks! We can only hope that cooler heads will prevail and the parties involved will find a less damaging way to express their differences. No one can really know what the future holds, but I can tell you one thing: The longer this goes on, the worse it will be for all of us.
How Can You Protect Yourself From Tariffs?
I’m not a fearmonger, but these are very real, very scary times for everyone in the piano business – and for our customers! Sadly, other than contacting our government officials and demanding they work to end this crisis, there’s very little any of us can do. I know I’m sounding like some kind of doomsayer but if you’re thinking about buying a piano in the future – don’t wait! Find a nice piano now and buy it before it becomes unaffordable.
It’s not my theory that prices are going to go up and product availability is going to go down. It’s already happening.
