While business tariffs can appeal to nationalists, in the long term, a business war will harm the economies of all countries. Here are the main reasons for photographers around the US and the world, perhaps they cannot welcome them and now why you can consider buying a camera gear.
An easy guide for global economics
Trade deficit 101
America has a powerful economy; In 2023, it represented about 26% of the world’s trade when measured against GDP (GDP). However, it also has a trade deficit. Say very easily, it means that it buys more goods and services from other countries, as it sells. No country in the world wants to live in that situation. Nevertheless, out of about 200 countries, only less than 60 is a trade surplus, and most of the small economies; They are surplus minuscule.
The balance of trade between two different countries is known as bilateral trade deficit. It is easy to assume that if the country exports more than the country B, it is bad for B, however, this perception is rejected by economists to a fleet of causes. At least, the production of goods and services is often done through complex global supply chains. Therefore, a business deficit with a country may reflect the business surplus with others involved in the production process. For example, a Ford F-150 has components made in Canada, Mexico, China and Thailand.
In addition, business balances are affected by a wide range of other factors, such as national savings and investment rates, exchange rates and overall economic development of a country. If you are interested, there are many online articles on that case.
GDP 101
We measure the performance of our economies by GDP (GDP). It represents the total value of all goods and services produced by a country, usually, one year. The GDP is seen as a poor measure of rapid economic performance as law enforcement, jail, fire services, hospitals, lawyers, judiciary, drug rehabilitation, military and many other services are involved in its calculations. They are indicators of a disturbed society. A country can be war-torn, with exceptional levels of crime, violence and murders, and poor population health, yet produces some tangible goods-but its gross domestic product may still be higher.
Long -term and long -term benefits of tariffs
Despite all this, it is attractive to put tariffs on the upcoming goods. In short term, it redirects a country’s population to spend its money from purchasing imported goods to save or buy domestic products.
Although there is a problem. As we have already seen, other countries will retaliate. Therefore, the export of a country will also be affected.
Suppose the USA hits Europe with high tariffs. Compiring, will retaliate with similar allegations against imports from Europe America. In addition, European businesses will look for alternative markets and start more trade with Asia, Australia, Africa and South America, which will all start doing more business with each other instead of America, whose belongings have become more expensive. Although the USA is the world’s largest economy, priced at around 29.17 trillions, but the rest of the world’s economy is more than $ 73 trillion. When they begin to trade more among themselves, it will compulsorily affect exports from the US.
Once each economic sector has found those alternative markets and those markets are seen as more stable and trade -friendly, businesses are likely to live with their new partners and do not return to trade with the US.
What does it mean for photographers
From the perspective of a photography, it is not going to help American brands. We live in a global market, and American manufacturers do not have a monopoly on high quality camera bags or tripods. Those of us who live abroad will buy from elsewhere. There are some excellent products of American companies, including Gopro, peak design, tiffen, codak and blackmizic designs, whose exports will collide with an anti -retaliation tariff. I am a big fan of some of these manufacturers, but if their prices rise, people from other countries will go somewhere else.
Although tariffs may have a boon for American producers in the domestic market in short term, there are photographic products that do not produce the US. Those prices will increase. Is an American company ready to compete with Godox, Never, Metz or Profot?
Of course, American companies can develop these products for their domestic markets. Lensbaby can handle the area of ​​the American market organized by 7Artisans and TTARTISANS. If yes, tariffs can help them in America, but their exports will still hit the rest of the world with mutual tariffs.
In addition, it takes time, money and expertise to develop a new product.
There is another side for this. As I mentioned earlier, many products are made from components and materials arising from many different countries. So, those components will also be hit by tariffs.
A lesson from Brexit
Isolation is never good. Bloomberg It is said that the UK economy in Brexit costs £ 100 billion per year, and the economy has shrunk to 5%. Here, we have been described as a cost-lived crisis. Brexit has been a major contribution factor in it.
If the US reverses business agreements with its partners, no one can expect the economy to suffer. The prices here are now 25% higher, which they were before Brexit, and this increased the prices of food to 6% from 2020 to 2022. Brexit also saw a decline of 18% in the price of the pound, so the imported cameras in Britain increased equally.
History has repeatedly shown that any step to reduce free trade between nations damages the country’s economy. But as an intelligent person said, the one thing we learn from history is that we never learn from history.
Should you buy now?
It is all basic general knowledge economics that you have probably learned in school. But now why is buying photography gear a good idea? The simple reason is that the products sitting in the shops were now imported before the tariffs were installed. If you are considering a purchase, hold them now before the price rocket.
