If you’ve been eyeing a new guitar, you might want to act fast. Reports indicate that looming tariffs could send prices soaring by 25% or more, affecting everything from brand-new imports to American-made instruments and even the secondhand market. This has both musicians and retailers scrambling—some urging buyers to lock in purchases now before costs climb.
Why Are Guitar Prices Rising?
The root of this shake-up lies in recent trade policies under President Donald Trump’s second term, which began in January 2025. His administration has imposed:
- A 25% tariff on goods from Canada and Mexico (effective February 4, 2025)
- A 10% tariff on Chinese imports (with threats of escalating to a staggering 60%)
These tariffs—essentially taxes on imported goods—are being used as leverage on issues like immigration and drug trafficking. However, their ripple effects are hitting the guitar industry hard, forcing manufacturers and retailers to reconsider pricing, sourcing, and production strategies.
How the Guitar Industry Gets Caught in the Crossfire
The guitar business is deeply globalized, relying on an intricate web of international suppliers and manufacturers. Here’s how the tariffs are affecting key regions:
- China – A major producer of budget and mid-range guitars (like Squier Strats and Epiphone Les Pauls) and essential components such as pickups, electronics, and hardware. A 10% tariff—potentially rising—means higher costs for these products.
- Mexico – Home to Fender’s Ensenada factory, which manufactures popular mid-tier models like the Player Series, as well as Martin’s string production. The 25% tariff directly raises costs for both finished guitars and critical parts.
- Canada – Supplies essential tonewoods (like maple and spruce), which are crucial for American guitar-making. A 25% tariff here means even U.S.-made guitars will feel the impact.
Since importers—like Fender, Gibson, and major retailers—have to absorb these costs upfront, history suggests they’ll pass most of it onto consumers. For example, a guitar that costs $250 to manufacture in Mexico would face a $62.50 tariff. By the time retailers apply their usual markups, a $500 guitar could jump to $625 or more.
The Ripple Effect: It’s Not Just Imports
Even American-made guitars aren’t immune. Many rely on imported parts—think Japanese tuners, South Korean pickups, and Canadian tonewoods. As tariffs drive up costs on these materials, even domestically-built guitars will see price hikes.
Other effects include:
- Used Market Surge – As new guitars become pricier, more players may turn to secondhand options, pushing up demand and raising resale prices. A Squier Bullet Mustang that once sold used for $150 might jump to $200 if the new ones hit $250 post-tariff.
- Boutique Builders Hit Hard – Custom guitar makers rely on exotic woods and high-end components from overseas. Higher costs could make handcrafted guitars even more expensive and inaccessible.
What Guitarists Are Saying
Among musicians, reactions are mixed. On forums and social media, some are rushing to buy now before prices climb, while others see this as a potential boost for U.S. manufacturing. However, skeptics argue that American labor and material costs are already high, meaning domestic production won’t necessarily lead to cheaper guitars.
As one industry insider put it:
“A Mexican Taylor built in the U.S. is still a Taylor—just at double the cost.”
By the Numbers: What to Expect
Analysts predict:
- Mid-tier guitars ($800–$1,500 range) could rise by $50–$150.
- Entry-level models may see the biggest percentage jump—a $199 Squier could climb to $250.
- High-end U.S.-made guitars may increase by 10–15%, as component prices rise.
Beyond guitars, the Tax Foundation warns that these tariffs could shrink U.S. GDP by 0.2%, with long-term effects on jobs and consumer spending. That’s bad news for an industry still recovering from pandemic-era supply chain disruptions.
What’s Next?
Manufacturers are looking for ways to adapt:
- Fender may shift more production to Indonesia, but even then, logistical costs could drive prices up by 10–20%.
- Gibson, which leans on U.S. production, might weather the storm slightly better but won’t escape rising component costs.
- Some brands may cut lower-margin budget models altogether, leaving fewer affordable options for beginner musicians.
And then there’s the wildcard: retaliation. Canada is considering 25% tariffs on $30 billion worth of U.S. goods, starting the same day as the U.S. tariffs—February 4, 2025. China, known for hitting back hard in trade wars, could strike with tariffs of its own, making global guitar prices rise even further.
Final Thoughts: Should You Buy Now?
The reality is clear: guitars—new, used, imported, or domestic—are about to get more expensive. Whether you’re a beginner looking for your first instrument or a seasoned player considering an upgrade, now might be the best time to buy before prices spike.
This isn’t just a financial issue—it’s about access to the tools that shape modern music. The question now is: how will players and manufacturers adapt to this new reality?
