Trade wars have economic consequences and one of them is higher prices. AV equipment manufacturer Emotiva has sent out an email with a link to its blog  announcing imminent increases in the price of its products  as a direct consequence of the 25% tariffs being imposed upon imported Chinese goods by the US government.
The company notes that during the first round of tariffs, it simply absorbed the increasing cost. However, due to the size of the second round of tariffs, and the extended nature of the trade war, it is forced to increase prices because it's business model has always depended upon smaller margins. Therefore it does not have the leeway to simply absorb the cost of the trade war. Emotiva further notes that the price increases do not simply affect the products it sells that are made in China. Because of the fact that many components also come from China, the cost of its US-assembled products will also increase.

Emotiva says that the price increases will go into effect on July 1. Granted, the company's products are already such a good deal, and increasing cost will likely not affect their status as a provider of high price-performance ratio AV options.

In its message, Emotiva expresses hope that the tariffs and the trade war are temporary, and that it will be able to reevaluate its pricing at some point in the future. If that happens, it will be interesting to watch and see which companies follow suit. But for now, what's happening is a price increase (Emotiva says it will be minor) that will be in place for the foreseeable future.

Per Emotiva, not everything the company makes will be affected, it will be limited to the following:

1. The XMC-1 Upgrade Program is not affected by the price increase.

2. Processors; RMC-1, XMC-2, and RMC-1L WILL NOT increase in price.

3. Loudspeakers and Subwoofers are unaffected by the tariff and pricing is unchanged.

4. Products that are affected, will only see a nominal 5% increase. We have absorbed the bulk of price increase internally.

Graphic by rawf8 from