“The real cost of Trump’s tariff tax”: Morgan Amps says new tariffs will add up to $1,000 to the price of its amp heads

Boutique tube amp manufacturer Morgan Amps has shared a post on Instagram detailing how tariffs imposed by President Donald Trump would affect the business and how it operates.

Earlier this month, Trump put into effect new 25% tariffs on imports from Mexico and Canada. Tariffs have also been imposed on goods from China.

And, as explained by the amp builder’s founder, Joe Morgan, this increased cost to acquire materials for manufacturing will have a severe and noticeable knock-on effect for the price of Morgan amps – for both the manufacturer and the player.

“Not trying to be political but just did some hard math last night trying to determine how these 25% tariffs will effect [sic] my business,” Morgan writes, before breaking down the numbers behind how increased costs for components will in turn hike manufacturing and retail prices.

“For every dollar I spend in manufacturing it costs the consumer 3.50 [dollars],” he continues. “Mfg [Manufacturing] costs + my profit margin + dealer profit. My cost metrics are WAY cheaper than most manufacturers.

“So when my parts cost increase… by 25% for the materials coming from Canada (transformers, aluminum, wood) it increases the cost of an AC20 DELUXE by 300.00. This 300.00 in manufacturing costs ends up costing the consumer 1050.00.”

A picture accompanying the lengthy post puts that price increase into perspective: “The real cost of Trump’s Tarrif Tax [sic]. Was 1999.00 could be 3050.00.”

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Concluding, Morgan writes, “Costs have increased across the board for everything. Tube prices have basically doubled. We can’t afford to play these kind of saber rattling games. It just doesn’t make economic sense. Call or write your senators and congress people and let them know how you feel.”

Replying to a commenter querying his workings, Morgan explained that associated costs regarding dealers and other related factors all contribute to the $1k increase in the example amp head.

“I work on a THIN margin,” he wrote. “I do not factor in my labor on any amp I build as I see my profit margin pay for my salary and all ancillary costs.

“To increase my costs by 300.00 for goods I would need to recover these costs in margin. I will not work for free. My dealers have costs associated with their business. It’s all real. If I cut my margin and just pass the increase to the dealer then it’s only 600 more. Would that be better? I think the pricing is already a stretch.”

Morgan later added to his post, presumably in response to similar comments he received, writing, “I don’t care which side of this argument you are on. Be an American and voice your opinion to your senator or congressman.

“Either way is fine by me I was just trying to show tangibly what it looks like to an American small business.”

Visit Morgan Amps and the Morgan Amps Instagram channel for further updates.