Donald Trump’s tariffs have dominated the global discourse for weeks, wreaking havoc on the stock market and creating a “climate of uncertainty” for the international touring business.

The American president last week paused higher tariffs for 90 days (a baseline 10% tax will still apply), but the trade war with China has ramped up with Trump raising tariffs on the country to 145% and China responding with a 125% rate on US imports.

On Friday (11 April), the White House exempted smartphones, computers and some other tech devices from the “reciprocal” tariffs, although Trump has since warned the exemptions will be short-lived.

Peter Heath, MD of PLASA, the lead international membership body for suppliers of technologies and services to the event and entertainment industries, tells IQ the tariff issue was the talk of the town at last week’s Prolight + Sound trade show in Frankfurt, Germany.

“The general consensus is that everybody’s waiting to see what happens next,” reports Heath. “The way that Trump and the administration work, things are kind of fluid, so most of the people I spoke to were saying, ‘Actually, we can’t do anything at the moment.’

“The biggest challenge for many of them is that the supply chain for their products is global – they might get some component parts from the Far East, America and Europe, and then that product may be put together in China. Some organisations, clearly, have started to do models to see what impact that has on their business, and others are just waiting to see what the final version of it is.”

“Clearly, the tariffs are unwelcome… People are still having to wait before they can make firm decisions”

Heath, who has more than 30 years’ industry experience and was previously head of Europe for Japanese music technology giant Roland Corp, elaborates on what that modelling could entail.

“If I’m a manufacturer and 75% of my business is in Europe and the UK, and 25% is in the US, then I’ve only got a 10% tariff on 25% of my business, so how can I spread that load?” he explains. “Can I bury that 10% across the whole of my business, or do I have to put it on the American side? Can I take a little less margin? Can I save a point by using a different component?

“If they’re relying heavily on parts and construction in the Far East – specifically China – then do they need to bring that into Europe? I’m sure some larger companies are looking at those kinds of scenarios.

“Clearly, the tariffs are unwelcome. And not only that, but they aren’t confirmed yet so people are still having to wait before they can make firm decisions about how they run their businesses going into the future.”

Heath suggests that if America’s standoff with the United States persists, it could have further unintended consequences for the European market.

“If the tariffs remain ridiculous, then how China responds is a bigger concern than America in some ways – because the tariffs on Chinese goods coming into Europe are nowhere near the tariffs for Chinese products going into America,” he argues. “China might re-divert all its energies to Europe, in which case a lot of product could be arriving in Europe, flooding an already busy market.”

There is a growing understanding of the likely ramifications of the tariffs for the live industry

While there remains far more questions than answers regarding Trump’s ever-changing plans – leaving many still reluctant to stick their heads above the parapet – there is a growing understanding of the likely ramifications for the live industry.

Some experts have raised the prospect of additional rules limiting the entry of foreign acts into the US, increasing the cost of work permits or complicating the entry visa process. FKA Twigs recently dropped out of this year’s Coachella and the remainder of her April tour dates in North America, due to “ongoing visa issues.”

Dank Live director Esben Marcher, meanwhile, surmised that a global trade war would affect the amount of US bands touring Europe.

“Production costs, which have been on the rise since after Covid, will most likely grow, making it more expensive for all organisers and promoters to set up shows or festivals,” he added.

The prospect of economic depression, perhaps leading to lower disposable income for consumers and hurting ticket sales, is a chief concern.

“One of the greatest worries – which has broad economic implications – is that the trade war will lead to decreased overall consumer spending on entertainment, affecting ticket sales and attendance at live events,” said Canadian Live Music Association (CLMA) president and CEO Erin Benjamin.

“Common sense would dictate that if prices go up, this will result in less disposable income and this may have a detrimental impact on fans buying tickets,” agreed US-based Move Concerts boss Phil Rodriguez, with the caveat that “it really is way too early to be certain of anything”.

“What’s happening right now, might not be happening next week”

Chris May, GM of Vancouver’s BC Place stadium in Canada, spoke of the likelihood of increased costs for goods such as merchandise, as well as building materials, technology and F&B.

Shadows Fall frontman Brian Fair, who works for instrument manufacturer and distributor St Louis Music, expanded on the tariffs’ effect on the music instrument market in a recent blog.

“Our landing costs have sky rocketed and those costs are being turned into higher prices that will unfortunately be handed down to the consumers,” he posted on Threads. “Some of these brands used to be made in the US but that priced them entirely out of the market so production shifted to overseas many years ago.

“I work directly with Main St. brick and mortar music stores, some that are barely scraping by. These increases, no matter how small, will make it even more difficult for these stores to survive. I am by no means an expert on international trade but I am seeing the damage caused by these tariffs first hand and this is just the beginning. Hope there is still a market left once the dust clears.”

Elsewhere, ticketing specialist Tim Chambers laid out concerns for artists including “higher shipping/customs fees, increased visa and performance tax issues, restriction on cross-border collaborations”.

“Also, merchandise is typically mass produced in the Far East or South America and could also be impacted, and in the medium-term instrument costs could increase due to the global supply chain of components,” he added.

Then again, as has been the case since day one, the situation is subject to change. As John Rostron, CEO of the UK’s Association of Independent Festivals, puts it: “What’s happening right now, might not be happening next week.”

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Shares in live music companies rebounded on a historic day for Wall Street after American president Donald Trump paused higher tariffs for 90 days.

While a baseline 10% tax will still apply to all countries except China, along with a 25% rate for all aluminium, and steel imports, but higher rates of up to 50% for dozens of other countries – dubbed the “worst offenders” by Trump – have been put on hold.

Trump said he had reached the decision because more than 75 countries had not retaliated against the US and had called “to negotiate a solution to the subjects being discussed”.

In response, the European Union has delayed retaliatory tariffs on the US for 90 days. But the US’ trade war with China intensified as Trump raised tariffs on the country to 125% after China responded to the president’s initial 104% tariff with an 84% levy on American goods.

An already turbulent week for the market took another twist following Trump’s tariff pause, leading to historic gains on the stock market as the S&P 500 rocketed 9.52% – its best day since 2008 and third-best day since World War II. In addition, the Nasdaq jumped 12.2% – its biggest since 2001 – and the Dow Jones was up 7.9%.

However, US markets were down upon opening this morning as Nasdaq fell 2.8%, the S&P 500 2.1% and Dow Jones 1.6%.

The touring business has been holding its own on the stock market in comparison to many other industries

Across the touring business – which has been holding its own on the stock market in comparison to many other industries – Live Nation closed 11% up yesterday at $131.75, Sphere Entertainment soared 19% to $30.97 and MSG Entertainment climbed 11% to $31.99, while live music firm Venu Corp rose 6% to $8.87 and streaming platform Spotify was up 10% to $569.06.

K-pop companies HYBE and JYP Entertainment ascended 7% and 4% respectively, with SM Entertainment roughly flat. MENA streaming service Anghami, owner of Dubai-based event management company Spotlight Events, was up 3.5%.

German-headquartered live entertainment giant CTS Eventim was also up 4% today to €93.30 as European markets rallied.

IQ has been speaking to a number of touring figures around the world about the “climate of uncertainty” the tariffs have brought to the business, with a common concern being the prospect of higher ticket prices and a reduction in disposable income for consumers. There were also fears of a decline in international touring.

“Whilst there is a belief that live entertainment is essentially recession-proof, that’s only so long as consumers continue to prioritise going to events within an increasingly challenging macro-economic environment,” ticketing expert Tim Chambers tells IQ.

“Our landing costs have sky rocketed and those costs are being turned into higher prices”

Danny Pelchat, of Quebec, Canada-based tour producer and promoter EMM Williams Productions, reports it has been business as usual up to this point.

“At this point in time we are in full creation mode and do not have immediate incidence from our southern neighbours,” he says. “Our next production will hit the road next summer, so we don’t have concerns now. Our contacts, worldwide, seem to operate as usual.”

Meanwhile, Brian Fair, who works for instrument manufacturer and distributor St Louis Music and is frontman of US metalcore band Shadows Fall, posted a lengthy blog on his Threads account about the tariffs’ effect on the music instrument market.

“Our landing costs have sky rocketed and those costs are being turned into higher prices that will unfortunately be handed down to the consumers,” he says. “We have tried to avoid increases where ever possible but a lot of it is unavoidable. Some of these brands used to be made in the US but that priced them entirely out of the market so production shifted to overseas many years ago.”

Fair said that “brick and mortar” music stores were already “barely scraping by”, adding: “These increases, no matter how small, will make it even more difficult for these stores to survive.”

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The live music world is coming to terms with US president Donald Trump’s sweeping tariffs, amid fears of an impending global trade war.

Stocks took a hit and the dollar plunged to a six-month low in the wake of the American commander-in-chief’s announcement of a “baseline” 10% tax on all imports into the US, to be applied on every country from this Saturday (5 April).

The European Union faces a 20% tariff, while higher rates of up to 50% will be imposed on dozens of other countries dubbed the “worst offenders” by the president. Trump declared yesterday (2 April) as “Liberation Day” when confirming his plans – which he insists will make America rich again – during a 50-minute speech at the White House.

Meanwhile, with Trump having raised levies on Chinese imports to 20% last month, China’s new 34% rate means it will now face a combined total tariff of 54%.

Although the full implications for the international touring business remain to be seen, there are expectations the tariffs will impact equipment manufacturers and production equipment in particular, with  increased costs for goods such as building materials, as well as technology, F&B and merchandise.

“This ‘tariff war’ just started – let’s see where it goes and how long it lasts”

Agent Jarred Arfa, EVP, head of global music, for Los Angeles-headquartered Independent Artist Group (IAG) admits to concerns.

“I do worry that tariffs here in America will lead to further inflation on basic goods and services, leaving less discretionary income for entertainment like concerts,” he tells IQ. “There is just a lot of uncertainty in the economy now, which will have a negative impact on consumer sentiment. Hopefully, this is all short lived.”

Phil Rodriguez, boss of Miami, Florida-headquartered Latin music promoter Move Concerts, argues it is too early to gauge the impact on touring.

“Common sense would dictate that if prices go up, this will result in less disposable income and this may have a detrimental impact on fans buying tickets,” he surmises. “But it really is way too early to be certain of anything. This ‘tariff war’ just started – let’s see where it goes and how long it lasts.”

President of Toronto-based BAM! Baird Artists Management Consulting Robert Baird observes that Trump’s tariffs “have sent the world economy reeling”.

“That cannot be good for the arts,” says Baird, a former president of North American Performing Arts Managers and Agents (NAPAMA). “A depressed economy will mean less disposable income and that will hurt the box office. Global tariffs will result in higher prices and higher prices will mean that global touring will be more expensive. And the profit margins for most artists are slim already, so decreased touring is imminent.

“Add all of this to the political climate in America and we see a narrowing of the possibilities for touring to North America for foreign artists.”

“I fear that a global trade war will affect the amount of US bands that tour Europe”

Offering a European view, Esben Marcher, director of Danish live music trade body Dansk Live, points to several potential results of the tariffs.

“Production costs, which have been on the rise since after Covid, will most likely grow, making it more expensive for all organisers and promoters to set up shows or festivals,” he contends. “The way US bands tour will probably be affected in some way, too. To my knowledge the Trump administration is aiming for tariffs on goods, not services, but I fear that a global trade war will affect the amount of US bands that tour Europe.”

Marcher adds, however, that his greatest concern is how the tariffs will affect the overall economy and the purchasing power of the audiences.

“In a situation with rising tickets prices as a result of higher production cost and high inflation, I fear that the positive development we have experienced in the last couple of years will come to a end,” he contends.

Last month, the Paris-based Organisation for Economic Co-operation and Development (OECD) projected the tariffs would lead to global growth slowing to 3.1% in 2025 and 3% in 2026, while revising its inflation forecast upwards by 0.3 percentage points to 3.8%, compared to its Economic Outlook in December.

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Live music executives in Canada have warned the touring industry faces a “climate of uncertainty” due to Donald Trump’s trade tariffs.

The US president imposed sweeping tariff hikes on Canada and Mexico last week, although some have been paused until 2 April. He also raised levies on Chinese imports to 20%.

Trump, who has called for Canada to become America’s 51st state, previously said he was taking action “to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country”.

A 25% tax on steel and aluminium products from all countries was imposed last week, with Canada and the EU both announcing retaliatory tariffs in the developing trade war.

Speaking to reporters aboard Air Force One, Trump said 2 April would be a “liberating day” for the US, with a new wave of levies to be introduced.

“It’s going to be reciprocal — in other words, whatever they’re charging, we’re charging,” he said. “Then in addition to that, on autos, on steel, on aluminium, we’re going to have some additional tariffs.”

“The current tariff war will create a climate of uncertainty for venues in the United States who hire artists”

Amid the ever-changing situation, Robert Baird, president of Toronto-based BAM! Baird Artists Management Consulting, advises on the likely consequences for live music.

“The current tariff war will create a climate of uncertainty for venues in the United States who hire artists: their funding may be in jeopardy and their clientele may be diminished simply because people will have less discretionary income,” he tells IQ. “A depressed economy due to the tariff will not allow for the flourishing of live performing arts.”

A former president of North American Performing Arts Managers and Agents (NAPAMA), Baird also points to potential additional hurdles for international touring acts.

“I am concerned that there may be additional rules coming which would limit the entry of foreign artists into the United States, whether by increasing the costs of work permits or putting increasing impediments on the entry visa process,” he adds.

“We could see increased costs for goods and materials such as building materials, technology, food and beverage, and merchandise”

Chris May, general manager of Vancouver’s BC Place stadium, which has hosted acts such as Coldplay, Ed Sheeran and U2, as well as the finale of Taylor Swift’s Eras Tour, breaks down some of the more granular implications.

“The potential impacts of tariffs on the live events industry will depend on each venue or company’s specific operations,” he says. “However, as with many industries, we could see increased costs for goods and materials such as building materials, technology, food and beverage, and merchandise.

“Fortunately, BC Place has always prioritised working with Canadian suppliers whenever possible, which puts us in a strong position to mitigate the effects of tariffs and limit any associated cost increases.”

May offers his thoughts on how the situation could play out from here – both for better and for worse.

“BC Place is thankful to have strong relationships with many Canadian partners and suppliers, and we remain committed to supporting the local economy,” he notes. “However, the worst-case scenario would involve a decline in tourism to British Columbia, which could result in fewer visitors for events, especially those travelling from the US. Depending on the event, many of our attendees come from south of the border, contributing not only to our ticket sales but also to the local economy.

“While it’s difficult to predict how things will unfold, we remain optimistic and committed to maintaining BC Place as an open, inclusive space. We look forward to continuing to welcome our friends from the US and showcasing the beauty of our province.”

“The past few years have shown us how resilient and adaptable our industry can be in the face of global uncertainty”

BC Place is gearing up to welcome AC/DC next month in advance of a multi-night run by Canadian homegrown hero The Weeknd this July, and May is determined not the let the outside issues distract from the venue’s core focus.

“Our goal of providing exceptional experiences for our guests and continuing to host world-class events remains the same,” he tells IQ. “While tariffs may present some challenges, our team is proactively working on solutions to ensure we continue delivering value for both our fans and partners.

“The past few years have shown us how resilient and adaptable our industry can be in the face of global uncertainty, and we have come out the other side stronger. BC Place’s commitment to overcoming challenges and evolving with the changing landscape has always been key to our success, and we’re confident that we’ll continue to thrive despite any external challenges.”

The Paris-based Organisation for Economic Co-operation and Development (OECD) today (17 March) published its latest Interim Economic Outlook. It projects the tariffs will lead to global growth slowing to 3.1% in 2025 and 3% in 2026, while revising its inflation forecast upwards by 0.3 percentage points to 3.8%, compared to its Economic Outlook in December.

Due to being hardest hit by the tariffs, the impact on Canada and Mexico is expected to be the most substantial, with the OECD now predicting Canada’s economy to expand by 0.7% this year and next, down from the previous forecast of 2% for both years.

Meanwhile, Mexico is projected to contract by 1.3% this year and a further 0.6% in 2026, having previously been expected to grow by 1.2% and 1.6%, respectively.

The US’ forecast has also been downgraded to 2.2% for 2025 and 1.6% for 2026, compared to 2.4% and 2.1% in the last outlook.

“The global economy has shown some real resilience, with growth remaining steady and inflation moving downwards. However, some signs of weakness have emerged, driven by heightened policy uncertainty,” says OECD secretary-general Mathias Cormann. “Increasing trade restrictions will contribute to higher costs both for production and consumption. It remains essential to ensure a well-functioning, rules-based international trading system and to keep markets open.”

“Today’s political reality creates an opportunity for our industry to help lead through these turbulent times”

Canadian Live Music Association (CLMA) president and CEO Erin Benjamin says the trade war is quickly raising significant concerns within Canada’s live music industry.

“Tariffs are expected to have multiple direct and indirect impacts on live music businesses and organisations, including increased operational costs,” she says.

“Today, one of the greatest worries – which has broad economic implications – is that the trade war will lead to decreased overall consumer spending on entertainment, affecting ticket sales and attendance at live events.”

However, Benjamin is keen to accentuate the positives amid the ongoing uncertainty.

“These three things are as true today as they ever have been – Canada’s live music industry is a cultural and economic powerhouse, our incredible home-grown artists embody the essence of Canadian identity, and, concerts have always meant positive impact for tourism, job creation, artist development, and economic growth,” she says.

Benjamin references the CLMA’s public awareness campaign, #CanadaIsLiveMusic, which was recently launched “to better highlight the potential for growth our sector represents”.

“Today’s political reality creates an opportunity for our industry to help lead through these turbulent times,” she continues. “With new, compelling economic data in hand, #CanadaIsLiveMusic sends a strong signal that our industry is more than ready to be an even stronger catalyst for, and champion of, a resilient Canadian economy.”

In closing, Benjamin extends a warm welcome to Canada’s new prime minister and Liberal Party leader Mark Carney, who succeeded Justin Trudeau as PM earlier this month.

“The CLMA welcomes Mr Mark Carney as the new leader of the Liberal Party, and looks forward to working with all political parties to harness the true power of live music, creating a legacy of cultural vibrancy, increasing jobs, economic resilience, and community connection for generations to come,” she finishes.

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