Musical instrument manufacturer threatens to move overseas due to Trump tariffs
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Musical instrument manufacturer Moog is threatening to move overseas due to President TrumpDonald John TrumpEsper sidesteps question on whether he aligns more with Mattis or Trump Warren embraces Thiel label: 'Good' As tensions escalate, US must intensify pressure on Iran and the IAEA MORE's recently imposed tariffs on some Chinese products.

The synthesizer designer based out of North Carolina is the latest major American company threatening to shift its business overseas over increased operation costs caused by hikes on tariffs, NPR News reported Monday. 

In an email to customers, the company warned that the Trump administration’s tariffs "will immediately and drastically increase the cost of building our instruments, and have the very real potential of forcing us to lay off workers and could (in a worst case scenario) require us to move some, if not all, of our manufacturing overseas."

The company in the letter explained that although it has made efforts to make its circuit boards with U.S. suppliers when affordable, even if it means paying a 30 percent markup in contrast to what it would pay for the same product overseas, the majority of the circuit boards and associated components for Moog’s instruments are shipped in from China.

As a result, the company is warning it may have to shift its business overseas as it will not be able to avoid "this substantial cost increase."


The Trump administration is preparing to slap tariffs on $34 billion worth of goods imported from China, with another round to follow. China has promised to retaliate.

Moog called on its consumer base to contact the state’s Republican lawmakers, Reps. Mark MeadowsMark Randall MeadowsHouse Republicans dismissive of Paul Ryan's take on Trump The 27 Republicans who voted with Democrats to block Trump from taking military action against Iran Live coverage: House Oversight examines Trump family separation policy MORE and Patrick McHenryPatrick Timothy McHenryHillicon Valley: Critics push FTC to get tough on YouTube | Analysts expect regulatory trouble for Facebook's cryptocurrency | Senators to get election security briefing | FBI, ICE reportedly using driver's license photos for facial recognition Facebook crypto project ambitions threatened by regulators: Fitch GOP senators press Pompeo on Boeing satellite sales to Chinese firms MORE and Sens. Richard BurrRichard Mauze BurrTop North Carolina newspapers editorial board to GOP: 'Are you OK with a racist president?' Hillicon Valley: Senate bill would force companies to disclose value of user data | Waters to hold hearing on Facebook cryptocurrency | GOP divided on election security bills | US tracking Russian, Iranian social media campaigns GOP senators divided over approach to election security MORE and Thom TillisThomas (Thom) Roland TillisGOP senator: 'Outrageous' to say Trump's tweets about Democratic congresswomen are racist Top North Carolina newspapers editorial board to GOP: 'Are you OK with a racist president?' Republicans make U-turn on health care MORE. It created a template letter detailed in the email and instructed its customers to sign and send it to the lawmakers. 

Moog’s call arrives just a week after Wisconsin-based motorcycle company Harley-Davidson announced that it would shift some of its production abroad due to separate tariffs. The European Union plans to impose retaliatory tariffs on motorcycles after Trump hiked tariffs on products coming from the EU.