Free Futuresource Analysis Looks At Industry Perspective, Workarounds For Current Tariffs Turmoil

April 16, 2025 by Dave Haynes

The research firm Futuresource Consulting has pro AV as a main focus and has, predictably, started to weigh in on the pinballing global tariffs situation – publishing a complementary bulletin called “Tariff Reflections on the Road” that reflects what analysts are hearing from makers and buyers at industry events like NAB.

Among the interesting notes in the report:

• Software and services are safe havens, at least for now, as there are no effective tariffs on this sector.
• Hardware manufacturers are incorporating dial-up modems in their product build, presumably for things like play-out devices and controllers, to have the products reclassified as telecommunications equipment, thereby reducing tariffs.

From the summary on the free download:

In the ever-evolving landscape of global trade, the concept of “Country of Origin” (COO) has been propelled into the limelight in recent global trade negotiations due to its significant impact on tariffs, regulatory compliance, and supply chain strategies.

“Having recently navigated this complex process with the support of outside counsel for Christie, successfully labelling a product as ‘made in Canada’, I can attest to the competitive advantages that can be gained,” commented Ted Romanowitz, Principal Consultant, Futuresource Consulting.

This article explores the competitive advantages based on factory locations, with lower tariff rates for factories in Mexico and Canada compared to those in the USA. It also discusses the impact of tariffs on parts and subcomponents, and the strategic decisions involved in sourcing components and transforming products.

Guy Hammett, Head of Home Audio at Futuresource, also shares his experiences from a two-and-a-half-week trip across China, Hong Kong, and Korea. During this journey, he met with clients, spoke at events, and discussed the latest trends in the audio industry, with a particular focus on tariffs.

“The uncertainty in American policy, which changes frequently, has led to a consensus that the trade landscape has shifted for the medium term. In the audio industry, economic challenges typically see consumers still purchasing new speakers and soundbars but opting for lower quality models due to rising prices,” commented Hammett.

Hammett delves into the economic challenges and changes in consumer behaviour, the importance of dual sourcing, and maintaining a diverse supply chain to mitigate the impact of tariffs.

Simon Forrest, Principal Technology Consultant, shares his insights from the NAB Show 2025 in Las Vegas, Nevada. Throughout the show, the complexity and uncertainty surrounding tariffs were major talking points.

“With potential tariffs reaching up to 40%, the impact on hardware-based sectors is expected to be substantial.”

This article discusses the substantial impact on hardware-based sectors, the relative safety of the software and services sector amidst tariff turmoil, and creative solutions to tariff challenges. Forrest also shares an innovative strategy where manufacturers used dial-up modems to reclassify their products as telecommunications equipment, thereby reducing tariffs.

The report includes reflections and insights from key countries such as China, Hong Kong, Korea, Taiwan, Vietnam, Thailand, India, Mexico, Canada, and the USA. It provides a comprehensive overview of how these countries are navigating the tariff landscape and the strategic decisions being made to stay competitive.