Each week, top executives at D’Addario & Company, one of the world’s premier manufacturers of musical accessories, convene at their Long Island headquarters to recalibrate their response to the unpredictable realities of global trade under President Donald Trump’s administration. Once a daily occurrence at the height of trade tensions in April, these strategy sessions have now become a weekly fixture, as the family-run firm adapts to shifting rules, rising tariffs, and geopolitical uncertainty.
D’Addario, best known for crafting strings and drumsticks favored by world-renowned musicians, is far from alone. Across the U.S., corporate boardrooms have transformed into trade war command centers, navigating complexities in supply chains and tariff policies that have evolved over decades. For D’Addario—a 50-year-old business with $235 million in annual revenue and six U.S. factories—survival now hinges on strategic innovation, operational flexibility, and swift execution.
Legacy Meets Complexity
Despite manufacturing the vast majority of its products in the U.S., D’Addario’s operations are deeply global: 45% of its output is exported to more than 120 countries, with Japan as its largest foreign market. Iconic musicians—from jazz legend Pat Metheny to country star Chris Stapleton and late rock drummer Neil Peart—have trusted D’Addario’s products for decades. Yet today, the company faces a different rhythm—one composed of rising tariffs, sourcing disruptions, and escalating costs.
A recent executive meeting highlighted a looming concern: tariffs on Japanese oak, known as Shira Kashi, a prized wood used in D’Addario’s high-performance drumsticks. With a potential 25% duty set to be imposed, the team assessed whether consumers would bear the added cost. The consensus: for loyal drummers, quality trumps price.
“Shira Kashi oak has no substitute,” said Hank Sheller, the company’s strategic sourcing lead. “Musicians demand it—and they’re willing to pay.”
Copper Woes and Cost Containment
Other challenges are less forgiving. A proposed 50% tariff on copper threatens D’Addario’s string business, which relies heavily on ultra-fine copper rod—an essential input in string winding. The complication? The origin of the copper is unclear, and suppliers may pass on costs regardless of where it’s sourced.
“Unlike Shira Kashi, copper is a commodity. Raising prices to offset tariffs simply isn’t an option,” noted Jim D’Addario, CEO and a member of the founding family.
Adaptive Tactics: Logistics, Free Trade Zones, and Rerouting
To stay ahead, the company has revamped logistics. Chinese-made goods destined for overseas markets are now shipped directly from Chinese factories, bypassing U.S. entry and avoiding domestic tariffs altogether. Chinese suppliers, once reluctant to support small direct shipments, are now eager collaborators amid the trade turbulence.
Further, D’Addario has filed for free trade zone status at its Farmingdale, NY warehouse. If approved, the designation would allow them to store foreign goods and defer or avoid tariffs on items not sold domestically. They also plan to begin limited assembly operations at the site to create re-exportable products exempt from duties.
Though promising, these initiatives aren’t instant solutions. “It could take over a year for approvals, fencing, and compliance installations,” said D’Addario.
Reimagining China Operations
Another avenue is under trial in China: sending bulk musical strings from New York for final retail packaging locally. This move reduces declared value for tariff calculation, offering substantial savings if China enacts retaliatory measures.
“We need proven alternatives,” said D’Addario. “Even if tariffs escalate, we’ll have tested methods to mitigate impact.”
An Escalating Price Tag
Despite such countermeasures, the company projects a steep rise in tariff costs—from $700,000 in 2024 to an estimated $2.2 million in 2025. That includes new levies on cane imported from its plantations in France and Argentina, critical for crafting woodwind reeds. The tariff, currently at 10%, may climb to 30% if threatened duties on Europe and Mexico are enforced.
“Anything from France could soon cost significantly more,” said D’Addario. “We’re bracing for what may come on August 1. As with everything in this trade environment—‘we’ll see what happens.’”
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