Guitar Journal: EarthQuaker Devices Faces Bankruptcy Threat Amidst Tariff Troubles
More Trump Tariffs updates and an innovative German tube amp
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Guitar Journal- EarthQuaker Devices Faces Bankruptcy Threat Amidst Tariff Troubles · Source: EarthQuaker Devices
This week, we look at EarthQuaker Devices’ recent interview, in which they state that they could face bankruptcy due to tariff pressures. Also, John Mlynczak, CEO of NAMM has released another statement about the Trump adminsitrations’s tariffs. Finally, Decillia Amplification has just released the Single 25, the world’s first single-ended guitar amp to utilise the mighty KT150 vacuum tube.
Guitar Journal
EarthQuaker Devices
Akron’s own EarthQuaker Devices faces an existential threat, with CEO Julie Robbins warning that the company could be forced into bankruptcy by the end of 2025. The culprit? Increasing costs and plummeting sales are directly attributed to the ongoing tariffs enacted by the Trump administration.
The recent interview on the Akron Beacon Journal site, shows just how much pressure the stompbox manufacturer in under.
Potential Offshore Production
Robbins recently shared the company’s dire situation during powerful testimony before the U.S. Senate Committee on Small Business & Entrepreneurship. She highlighted a paradoxical outcome of the tariffs: while ostensibly designed to boost U.S. manufacturing, they are instead pushing EarthQuaker Devices towards considering offshoring its production to survive.
Jamie Stillman, EarthQuaker President and Robbins’ husband, echoed concerns about potential layoffs or cuts to employee pay and benefits if the unfavourable tariff conditions persist.
During the interview the couple state they are personally invested heavily in the business, securing $1.2 million in loans and using their family home as collateral. “We have perfect credit and we’ve never missed a payment, but we’re rapidly running out of liquidity,” Robbins stated during her May 14 testimony, underscoring the personal risk involved.
Chinese Materials
EarthQuaker Devices is celebrated for its diverse range of over 40 guitar pedal models. This includes the recent Chelsea is a Low End Fuzz Driver collaboration with James Murphy of the LCD Soundsystem.
Constantly Fluctuating Percentages
However, the company’s reliance on imported raw materials, with approximately 75% of the value originating from China, has made it particularly vulnerable. Brad Thorla, head of inventory systems management and purchasing, noted the difficulty in calculating exact tariff costs due to constantly fluctuating percentages.
Forecasts shared by Robbins show a staggering potential increase in cost per pedal – from 2 cents on April 27 to $12.80 by December 28, a 640% surge.
Despite being recognized as the 2019 Exporter of the Year by the U.S. Small Business Association for exporting 30% to 40% of its finished pedals, this very strength has become a liability.
Robbins is now reluctantly exploring manufacturing some pedals overseas, solely for international markets, to circumvent the hefty U.S. import tariffs on raw materials. “For me, it’s just unpalatable to import manufactured products to serve our domestic market,” she stated.
Exports Down
The financial strain is exacerbated by a significant decline in both domestic and foreign purchaser interest.
Robbins’ testimony revealed export reductions of 50% to 100% in some countries, attributing this to “anti-American consumer sentiment and the global financial fallout from the chaotic rollout of US tariffs.” April marked the worst month for the company since 2008, with dealers delaying purchases due to tariff uncertainty.
EarthQuaker Devices are obviously watching what the Trump administration does next, and this could mean they have to either move production outside of the USA, or hope that Trump reverses some of these tariffs on China soon.
John Mlynczak Statement Update
Recent White House decisions have brought a temporary reprieve to the music products industry grappling with high global tariffs.
Following vocal advocacy from industry leaders like NAMM’s CEO, the US has reportedly lowered its “reciprocal” tariffs on Chinese imports from 145% to 30% for a 90-day period. Simultaneously, China’s retaliatory tariffs on US goods will decrease from 125% to 10%.
Following last weeks’ Guitar Journal coverage, and the EQD story above, now John Mlynczak the NAMM CEO has announced a further statement about the Trump tariffs.
While welcoming the immediate relief, NAMM’s CEO emphasised that the remaining 30% US tariff on Chinese imports and 10% on other countries will still impact manufacturers and retailers ahead of key shopping seasons.
This de-escalation, confirmed by the BBC, also includes cuts to new tariffs on small packages, now at 54% from 120%, though a $100 per-parcel fee remains. A previously slated $200 charge for June 1st has been cancelled.
90-Day Reprieve
The 90-day window, while helpful for short-term planning, doesn’t alleviate long-term uncertainty. NAMM continues to advocate for a stable, long-term tariff strategy and reiterates its stance that musical products should be exempt from tariffs due to their cultural significance and lack of national security risk.
However, reports suggest tariffs could rise again after the 90-day period, though not to their previous peak.
All this uncertainty is having some devasting affects on small business in the US and as seen in the EQD story above, some smaller bunsiness may have to move production outside of the US to remain viable in the globla economy.
Single 25
Decillia Amplification has launched the Single 25, a pioneering single-ended guitar amp that’s the first in the world to feature the powerful KT150 vacuum tube.
They state that this innovative design delivers an unprecedented tonal palette, from pristine American cleans to rich, saturated overdrive, all while retaining exceptional warmth, dynamics, and clarity.
Class A
The 25W, pure Class A, all-tube combo uniquely blends the shimmering clarity of single-ended designs with the authoritative bass response of larger push-pull amps. Its warm breakup creates harmonically complex overdriven sounds, perfect for any guitarist.
The Single 25 also offers ultimate versatility with a proprietary Reconfigurable Auto Bias System for True Power Control at 25W, 10W, or 4W, making it ideal for everything from bedroom practice to live performances.
HandCrafted
Handcrafted in Germany, each Single 25 includes comprehensive tone controls, a bright switch, tube-driven spring reverb, and a Boost/Lead channel for an extra +8dB.
Built To Order
It comes with a footswitch for reverb and boost, a 12” Eminence Legend 1258 speaker (custom options available), and is housed in a solid pine cabinet with a German-made dustcover. Made to order, the current lead time is 11 months, with customisable finishes.
The AmplificationSingle 25 is available for pre-order at €3190 / $3560.
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2 responses to “Guitar Journal: EarthQuaker Devices Faces Bankruptcy Threat Amidst Tariff Troubles”
I’m sorry but this is a bunch of misinformation.
What tariffs are actually doing is, among other things, exposing which “Made in the USA” companies are not actually making their products in the USA. ED pedals have always been on the expensive side, and ED has always justified this by, allegedly, making their products in the USA. Now it turns out that the vast majority of their BOM is sourced in Asia, and that really all they do in the USA is assemble parts.
Of course if ED had been straightforward about this they could not have sold their pedals at that price point. But let’s compare it to Seymour Duncan pedals: they have always printed on the backplate if the pedal was “Made in the USA”, where the majority of the BOM was actually sourced in the USA, or “Assembled in the USA”, where it’s the same as ED. SD’s price points have always reflected this fact.
It’s also interesting that ED is admitting that they have squeezed their customer base to the point where they can’t increase prices any more, so on top of already sourcing the BOM in Asia they now intend to move production to Asia. However, when (not if) they do that please observe what won’t happen: prices will not come down.
At the end of the day someone at ED, be it management or investors, are either making a ton of money, or they are being incompetent. Neither option means they have any justification to survive.
Which also ties in with another fact: the pedals market is overcrowded, and with too many players competing for the same small piece of the cake. Nobody will miss ED.
Tariffs, lol. Gimme a break.
But that will be a great excuse for companies to take their profit/value and run.