Musical Instrument & Supply Stores NAICS 459140

Mar 25, 2025 - Higher Prices Expected from New Tariffs

• Musical instrument retailers are preparing for higher instrument prices and other adverse impacts from new tariffs imposed by the Trump administration, according to a statement from the National Association of Music Merchants (NAMM) in Synthtopia. NAMM CEO John Mlynczak said that the new tariffs will increase the prices of musical instruments, which are often imported or made with imported parts. The NAMM has called for “universal exemptions from punitive tariffs for all musical products and accessories that are used by musicians worldwide.” New US tariffs have targeted imports from China, Canada, and Mexico. In particular, entry-level musical instruments imported from China would disproportionally affect young musicians, students, and school music programs. According to the National Retail Federation, “Like many other industries, musical product trade is also highly interconnected in North America, with decades of successful trade and partnerships between Mexico and Canada that have allowed us to compete globally.”
• Consumer confidence levels, an indicator of discretionary spending, have fallen due to consumer anxiety about tariff effects and economic uncertainty, according to a report in CFO Dive. The consumer sentiment index from the University of Michigan dropped 11% in March 2025, marking the third straight month of declines and hitting the lowest level since November 2022. In addition, the Conference Board index of consumer sentiment in February 2025 marked the biggest decline since August 2021 and the third straight month of declines. According to Stephanie Guichard, senior economist for global indicators at the Conference Board, “There was a sharp increase in the mentions of trade and tariffs, back to a level unseen since 2019. Most notably, comments on the current administration and its policies dominated the responses.”

• Musical instrument and supplies retailers will have to monitor minimum wage changes in 2025, as 21 states and 50 local jurisdictions increased their minimum wages, according to Chain Store Age. States with the highest minimum wage in the US are Washington ($16.66 per hour), California ($16.50), and New York ($16.50). Nearly 30 cities in California and seven towns in Washington will raise minimum wages in 2025, with Tukwila, Washington, offering the highest minimum hourly wage in the US at $21.10. According to the Economic Policy Institute, the minimum wage change will affect more than $9 million workers and raise pay by a combined $5.7 billion. Unchanged since 2009, the federal minimum wage is $7.25 an hour, and some 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
• Shoppers continued to flex their omnichannel shopping muscles in the 2024 holiday shopping season, with a 7.5% increase year over year in Buy Online, Pick Up in Store (BOPIS) and Reserve Online, Pick Up in Store (ROPIS) transactions, according to Chain Store Age. The report from Locally found that nearly 50% of online shoppers abandoned their carts when local pickup wasn’t an option. Over 90% of leading retailers are expected to adopt ominichannel strategies. According to Locally CEO Mike Massey, "The data shows a clear and sustained shift toward local retail as a preferred choice. Consumers increasingly demanded the flexibility to browse and buy on their terms, and local retailers were quick to respond with omnichannel strategies that bridged the gap between digital and physical commerce.”