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Should IEM enthusiasts worry about rising tariffs?
Published onApril 10, 2025
There’s no two ways about this: those in-ear monitors (IEMs) you’ve had your eye on for a while will soon shoot up in price. Recent back-and-forths between the US and China regarding tariffs will affect the price of goods sold to Americans, and in particular, any headphones or speakers manufactured and sold by Chinese companies overseas.
But by how much? Given changes to the de minimis exemption — the IEM hobby is in for some dark days even if tariffs get paused. What does that mean for the community, and is it in trouble?
Editor's note: the situation around trade disputes and tariffs is fluid, and this article may become outdated as soon as it's published. Please answer the poll questions anyway, as it could help shed light on the IEM community's plans for the future.
Tariffs boost the cost of audio’s least expensive segment
To put it bluntly: we’re in uncharted territory. Audio gear is going to get more expensive, and very little will escape it. At the beginning of May, new US tariffs will go into effect, making IEMs — among most other gadgets — much more expensive.
What this means for IEMs
One of the most interesting segments of the audio hobby for the last decade has been the fervor around IEMs. Dirt-cheap earphones that trade advanced features for excellent performance are a hit for obvious reasons, and there have been countless options available to the conspicuous consumer chasing that audio dragon.
What makes the IEM community so accessible in the first place is just how cheap a new set of earphones can be. With prices for extremely good IEMs starting at only $15 and countless models under $100, many enthusiasts will buy many over the course of a year just to try out because the financial penalty is essentially moot. This kind of buying behavior led to a small but dedicated audience with high buying intent and return business for manufacturers.
But what happens when prices for even the least expensive IEMs start multiplying? What was once $20 could become $50, or even higher, so the low barrier to entry might disappear for this segment. If that happens, new blood will be much harder to come by, as the risks associated with getting IEMs you truly don’t like sting a lot more.
How important is the increasing price of IEMs to you?
Unfortunately, trade war will increase what you pay in the US even if tariffs get rolled back. Though it’s hard to estimate how much or for how long, prices in the US are about to skyrocket for the previously inexpensive products. Given the size of the market, lower sales in this country will be impossible to replace elsewhere. It’s possible that prices outside of the US will have to rise to make up for a lack of sales in the States.
Doubling or even tripling the cost of cheap IEMs might sting, though $50 still isn’t much to spend on a reliable product. But are you willing to pay between $110 and $150 for something that used to be $80? What about $300 for something that was hovering around $150? How much are you willing to pay in taxes for your latest gadget? Is it even worth it anymore if you’re not saving much money?
How much more would you pay for your favorite IEMs?
Though wireless headphones may be the hardest-hit category by these trade disputes, it’s no less likely that IEMs will be hit hard enough that changes will have to happen. Enthusiasts will have to make choices that may lead to reduced participation in the hobby as it becomes more expensive.
De minimis? De-ceased
While it’s going to take a while for the consequences of tariffs to show up on the sticker price of goods, inexpensive products like IEMs are particularly vulnerable because they absolutely depend on their affordability to survive. But as a double-whammy, Wednesday’s executive order made changes to the de minimis exemption that will increase costs for all products that make it to the border no matter how inexpensive. Even items as cheap as the least-expensive IEMs will see effective prices jump due to this change.
The relevant text reads:
All postal items containing goods described in section 2(a) of Executive Order 14195 and sent to the United States through the international postal network from the PRC or Hong Kong and transported by carriers that are valued at or under 800 dollars and that would otherwise qualify for the de minimis exemption authorized in 19 U.S.C. 1321(a)(2)(C) shall be subject to the duties described in subsection (c) of this section…(c) Duty Rates. Transportation carriers delivering shipments to the United States from the PRC or Hong Kong sent through the international postal network must collect and remit duties to CBP under the approach outlined in either subsection (c)(i) or subsection (c)(ii) of this section…(i) Ad Valorem Duty. 30 percent of the value of the postal item containing goods for merchandise entered for consumption on or after 12:01 am eastern daylight time on May 2, 2025.(ii) Specific Duty. 25 dollars per postal item containing goods for merchandise entered for consumption on or after 12:01 am eastern daylight time on May 2, 2025, and before 12:01 am eastern daylight time on June 1, 2025, and 50 dollars per postal item containing goods for merchandise entered for consumption on or after 12:01 am eastern daylight time on June 1, 2025…(e) Discretion to Require Formal Entry. CBP may require formal entry, in accordance with existing regulations, for any international postal package that may otherwise be subject to the duty described in subsections (b) and (c) of this section. An international postal package for which CBP requires formal entry will not be subject to the duty described in subsections (b) and (c) of this section, and instead will be subject to all applicable duties, taxes, and fees in accordance with all applicable laws.” — Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People’s Republic of China as Applied to Low-Value Imports
In plain speak, this means that any sub-$800 purchase you make from China is going to see at least a 30% duty, or $25 for non-consumable items. Though not explicit in the order, it’s a safe bet that you’ll get beaned with whichever figure is higher. It’s also possible border authorities could require your import to be formally imported, which would make it subject to much higher blanket tariffs and product-specific duties. While this might not deter people looking for exceptionally inexpensive IEMs like the roughly $19 Moondrop’s CHU II, the top end of the market is going to crater fast as it gets hit with really extreme price hikes.
What do you feel?
Looking around online, it seems like the IEM community is watching these events unfold with bated breath — and dismay. Chinese manufacturer FiiO announced that prices will change, and we’re likely to see other vendors follow suit like they did a couple of months ago. If the latest tariffs hold — there’s a bad moon on the rise for IEM enthusiasts.
With incoming tariffs, are you re-thinking buying IEMs in the next 6 months?
The uncomfortable issue here is that IEM companies are going to have to make some decisions — and fast — about their futures. If demand falls off because of the price, it’s not inconceivable that some companies might adjust their strategies to abandon models that require high sale volumes to turn a profit. But even if the IEM community rallies around their chosen products, I find it hard to believe sale volume won’t suffer. Higher prices often come with reduced demand — or the ability to pay for more units.
Hopefully, this will end with tolerable price increases, but the situation is not the same as it was in early 2025: price increases are likely to be much, much higher after all is said and done. We at SoundGuys hope this won’t happen because IEMs are awesome, and everyone should have an inexpensive option for good audio.
We’ll try to keep as many articles as possible up to date, but please be patient with us if something’s outdated. The situation can change daily for huge amounts of our content.