2w ago

earthquaker devices may not survive tarrifs.

www.guitarworld.com “My employees are so valuable to me. They have this institutional knowledge and rely on their income from this job to support their families”: EarthQuaker Devices CEO reveals the Ohio-based business is at risk of going bankrupt amidst tariff uncertainty

The boutique pedal company has forecasted that, should the trade war persist, the cost per pedal would increase from 2 cents in April to $12.80 in December

“My employees are so valuable to me. They have this institutional knowledge and rely on their income from this job to support their families”: EarthQuaker Devices CEO reveals the Ohio-based business is at risk of going bankrupt amidst tariff uncertainty

Guitar Pedals @lemmy.world

www.guitarworld.com /gear/effects-pedals/earthquaker-devices-ceo-reveals-the-business-is-at-risk-of-going-bankrupt-amidst-tariff-uncertainty

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USpolitics @lemmy.world

Unsurprisingly, tarrifs are killing small businesses. E

www.guitarworld.com /gear/effects-pedals/earthquaker-devices-ceo-reveals-the-business-is-at-risk-of-going-bankrupt-amidst-tariff-uncertainty

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Alongside her speech, she also provided written testimony showing that, over the course of 2025, the tariffs would result in the cost per pedal increasing from 2 cents on April 27 to $12.80 on December 28th – a 640% increase.
Trumps tarrifs are dumb as fuck but 2 cents to make a pedal? LOL wut? Is that a typo? How is it possible to make a pedal for 2 cents?
- I'm guessing it's a typo. Unless their profit margin is THAT slim.
- Nah, I think what they're saying is that; at April 27 tarrifs added 2c to the cost of their pedals, but that will increase 640% to $12.80 later this year. It's worded weirdly and took me a while to get (if I do understand correctly), but i don't think it's a typo.
  
  To expand. Let's say a pedals raw BOM* cost is $30.
  Plus old tarrifs = $30.02.
  Plus new tarrifs = $42.80.
  (*Bill of materials)
  
  Oh right 👍. Yeah that makes a lot more sense.
  For a second I thought they were making obscene profits from 2 cent child labour pedals. No no, this makes way more sense 😁.

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