Blackmagic Design Was Planning to Open a US Factory But Scrapped it Because of Trump’s Tariffs
Australia-based cinematography company Blackmagic Design says it has canceled the building of a factory in Texas after President Trump’s tariffs spooked it.
In an interview with The Verge, Blackmagic Design spokesperson Patrick Hussey reveals, “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.”
But Hussey says that although those semiconductors and PCBs are sourced from US companies, they import the parts for semiconductors from overseas, “complicating” things for the company – which recently announced the Pyxis 12K camera and the video-editing software DaVinci Resolve 20.
“If we proceed with the US factory, we’d incur tariffs on those parts, increasing costs and negating the savings we anticipated,” adds Hussey.
The interview, published yesterday, comes after Blackmagic told PetaPixel last week that it increased the price of its recently-announced Pyxis 12K camera by $500 also because of Trump’s tariffs. Other countries have been unaffected.
“In general, it’s [a] bit in flux as developments are happening with the tariffs, and our team is trying very hard to keep customers and resellers informed with updated pricing, so that’s why they may see some changes,” Blackmagic told PetaPixel. “Since we have factories in different countries, it causes different price increases, and we are moving production of some products to help lower costs for customers from what we had previously raised them to since the tariffs went into effect.”
Hussey tells The Verge that, “due to new government tariffs, price increases in the US have been unavoidable. That said, we operate factories in several countries, so production of some product lines has been relocated to reduce the impact on our customers.”
A CNBC supply chain survey found that 61% of businesses report that moving production to lower-tariff countries makes more financial sense than relocating to the US. Even among firms that are considering a US move, 81 percent expect to prioritize automation over human hiring. Another 61 percent admit they’ll likely raise prices to offset tariff-related expenses.
Image credits: Header photo licensed via Depositphotos.
