Blackmagic Design says tariffs have made camera price hikes ‘unavoidable’

Blackmagic Design, an Australian digital cinematography camera company, has been forced to increase prices in the US due to tariffs imposed by the Trump administration.
The company was planning to build a new factory in Dallas, Texas, but tariffs on imported goods have made it difficult to justify opening a production line in the US.
Blackmagic Design’s spokesperson stated that if they proceed with the US factory, they would incur tariffs on semiconductor parts and PCBs used in their cameras, increasing costs and negating any anticipated savings.
A supply chain survey found that 61% of respondents from unspecified businesses would be financially better off moving to lower-tariff countries instead of the US, and 81% said they would automate production rather than hiring human workers if they relocated to the US.
Blackmagic Design has already applied a price hike to all products sold in the US, with some products listed at $6,600 after being initially marketed at $5,000, while prices in other countries remain unchanged.

An illustration of Donald Trump holding a tariff chart behind a red, rising arrow. — Tariffs are dissuading, not motivating, some companies to move their production to the US.

Blackmagic Design, an Australia-based digital cinematography camera company, was gearing up to start making products in the United States before the Trump administration blew a tariff-shaped hole in its plans. Now, not only is Blackmagic having to increase prices in the US to mitigate some of the levies on imported goods, but those same tariffs are also making it difficult to justify opening a US production line.

“We were planning to build a new factory in Dallas, Texas, to streamline our supply chain and allow us to work more directly with US semiconductor companies,” Blackmagic Design spokesperson Patrick Hussey told The Verge. The introduction and ever-shifting confusion around President Donald Trump’s blanket global tariffs have since complicated things according to Hussey, because while the semiconductor parts and PCBs used in Blackmagic’s cameras are sourced from US companies, those companies are importing them from overseas.

“If we proceed with the US factory, we’d incur tariffs on those parts, increasing costs and negating the savings we anticipated,” said Hussey.

It’s a no-win situation that many other businesses in and outside of the US are facing if they deal with global suppliers. While Trump has brazenly declared that tariffs will incentivize companies to bring manufacturing to the US to remain competitive, if these manufacturers use foreign equipment or materials in their supply chain, they may — directly or indirectly — still get hit with hefty import fees. (That’s leaving aside the cost of doing business when the fees change dramatically from day to day.)

A supply chain survey conducted by CNBC found that 61 percent of respondents from unspecified businesses would be financially better off moving from high-tariff countries to lower-tariffed countries instead of the US, and 81 percent said if they did relocate to the US, they would automate production instead of hiring human workers, failing to deliver the manufacturing jobs Trump promised. 61 percent of the companies also warned they would raise prices for products coming in under the new tariff rates.

Blackmagic Design customers have already noticed a price hike has been applied to all products sold in the US, with the new Pyxis 12K briefly listed at $6,600 after initially being marketed at $5,000. This has since fallen to $5,500 after Blackmagic announced it had moved Pyxis production to lessen the tariff impact, but prices in every country besides the US have remained completely unscathed.

“Due to new government tariffs, price increases in the US have been unavoidable,” said Hussey. “That said, we operate factories in several countries, so production of some product lines has been relocated to reduce the impact on our customers.” Hussey told The Verge that Blackmagic is now planning to “wait a few months” to see if the supply chain for the components it needs will move to the US. “If it does, we could still achieve the supply chain benefits we were aiming for.”

The Trump Administration added “smartphones, computers, and other electronics” to its list of tariff exemptions last week — a list with no clear carveout for cameras or camera-specific manufacturing equipment — but then swiftly warned that companies shouldn’t get comfy. Commerce Secretary Howard Lutnick said these are not “a permanent sort of exemption,” and that these goods will be hit with the same unspecified tariff rules that Trump is expected to apply to the semiconductor industry in “a month or two.”

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Q. What is Blackmagic Design’s initial plan regarding manufacturing in the US?

A. Blackmagic Design was planning to build a new factory in Dallas, Texas, to streamline their supply chain and work more directly with US semiconductor companies.

Q. How have tariffs affected Blackmagic Design’s plans for manufacturing in the US?

A. Tariffs have made it difficult for Blackmagic Design to justify opening a US production line because they would incur tariffs on imported parts, increasing costs and negating the savings anticipated.

Q. What is the impact of tariffs on companies that use foreign equipment or materials in their supply chain?

A. Companies may still get hit with hefty import fees even if they bring manufacturing to the US, as the tariffs apply to all goods regardless of where they are produced.

Q. How do businesses respond to the uncertainty and complexity caused by Trump’s global tariffs?

A. Many businesses find it a no-win situation, as they may be better off moving from high-tariff countries to lower-tariffed countries or automating production instead of hiring human workers.

Q. What is the response of Blackmagic Design customers to price hikes in the US due to tariffs?

A. Customers have already noticed price increases on products sold in the US, with some products listed at higher prices than initially marketed.

Q. How has Blackmagic Design responded to the impact of tariffs on their business?

A. The company has increased prices in the US to mitigate the impact of levies on imported goods and is now planning to wait a few months to see if the supply chain for components will move to the US.

Q. What is the current status of the Trump Administration’s list of tariff exemptions?

A. The list includes “smartphones, computers, and other electronics” but does not provide clear carveouts for cameras or camera-specific manufacturing equipment.

Q. How long are Commerce Secretary Howard Lutnick warning that the tariffs on these exempted goods will remain in place?

A. He warned that these goods will be hit with the same unspecified tariff rules as the semiconductor industry in “a month or two.”

Q. What is the overall impact of tariffs on businesses and consumers, according to a supply chain survey conducted by CNBC?

A. 61% of respondents would be financially better off moving from high-tariff countries to lower-tariffed countries, while 81% said they would automate production instead of hiring human workers if they relocated to the US.