The Tariff Situation Isn't Getting Better for Photographers After All

Yesterday, the U.S. Supreme Court struck down President Trump’s global tariffs he instituted last year based on the 1977 International Emergency Economic Powers Act (IEEPA). Hours later, the president announced new 10% global tariffs against most imports under Section 122 of the Trade Act of 1974. Today, the president said he is actually going to raise the tariffs to 15%, the maximum allowed under the trade law he is using for his latest tariffs.

It is just yet another chaotic chapter in an extremely unpredictable period of U.S. economic policy, and, yet again, bad news for American consumers, including photographers. After President Trump instituted reciprocal tariffs last April, nearly every camera company began raising prices in the U.S., sometimes multiple times. Japanese companies Fujifilm, Sony, Canon, and Nikon raised camera and lens prices in direct response to American tariff policy. German company Leica did so, too, including in Canada.

When the U.S. Supreme Court ruled Trump’s IEEPA-based tariffs illegal yesterday, businesses celebrated, the stock market rose, and photographers felt hope that gear, nearly all of which is made outside the U.S., might soon become more affordable.

These hopes are dashed, at least for now. Even the 10% tariff Trump announced yesterday was still less than 15% tariff that had most recently been applied to most imports from Japan, including photo equipment. A small silver lining. However, with today’s news, it looks like nothing is poised to change, at least for a while.

Under Section 122 of the Trade Act of 1974, the president has essentially unchecked authority to impose tariffs up to 15% for up to 150 days without congressional approval. This statute and other related ones the president is citing let the executive branch use limited tariffs to address what the president considers to be unfair trade practices, a very common refrain Trump has used to justify tariffs from the get-go.

While the Supreme Court upheld lower court rulings that President Trump could not use IEEPA to implement tariffs, the president retains some power to institute tariffs. To be clear, tariffs are a very common and normal tool presidents and their administrations use as part of broader economic policy. Tariffs designed to protect specific industries, like steel, lumber, and automotive manufacturing, are very common, for example.

What’s much less common are broad, global reciprocal tariffs like the ones the U.S. Supreme Court ruled illegal by a 6-3 majority and the new ones Trump is implementing under Section 122. This type of tariff strategy is rarely used for many reasons, not the least of which is that foreign governments are not the ones who foot the bill — that would be American businesses and, ultimately, consumers. As the Cato Institute wrote earlier this week, numerous independent studies have shown repeatedly that nearly all of the cost of tariffs is paid by Americans, whether that’s American businesses or consumers. There is no reason to believe that will change with the Trump administration’s latest tariffs.

“Based on a thorough, detailed, and complete review of the ridiculous, poorly written, and extraordinarily anti-American decision on Tariffs issued yesterday, after MANY months of contemplation, by the United States Supreme Court, please let this statement serve to represent that I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries, many of which have been ‘ripping’ the U.S. off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15% level,” President Trump wrote this morning on Truth Social.

“During the next short number of months, the Trump Administration will determine and issue the new and legally permissible Tariffs, which will continue our extraordinarily successful process of Making America Great Again – GREATER THAN EVER BEFORE!!! Thank you for your attention to this matter. President DONALD J. TRUMP”

All that is to say that camera and lens prices are very unlikely to go down anytime soon. Hopefully, the U.S. can strike new deals with foreign countries to lessen the damage to Americans, who, as camera company financial reports all show, are hugely important consumers to the photography industry. Tariffs are bad news across the photo industry, from individual consumers to photo companies themselves.

Image credits: Header photo licensed via Depositphotos.com.