Here's a case in point ...
Above is a US-made Fender Stratocaster Vintage II series that retails for $2,299.99.
This next one, a Player II model, made in Mexico, sells for $799.99:
At NAMM 2025, Fender announced just a few days ago a new series of Indonesian-made Standard Strats that will sell for $599.99:
Which are being manufactured at the same factory that makes Squier Strats (Classic Vibe), which sell for $429.99:
While there are subtle specification differences in between the two Indonesian models, the new Standard model has the Fender logo instead of Squier. Note: Squier is Fender's subsidiary brand, designed to offer budget-friendly alternatives to Fender guitars. They are ideal for beginners or those on a tighter budget. However, the Squier logo often carries a stigma in the guitar community as it's associated with beginner instruments and lower quality compared to Fender. This perception is rooted in Squier's budget branding and past inconsistencies. Putting a Fender logo on Indonesian-made Strats is clever, and at the same time increasing the price substantially.
Do you see where this is going?
The new Standard Strat made in Indonesia seems likely to be a strategic move, potentially tied to tariff concerns. With the popular Player I & II series made in Mexico priced higher, Fender is likely positioning this new series as a cost-effective alternative to mitigate the financial impact of tariffs or trade uncertainties. By ramping up manufacturing in Indonesia, they can leverage lower production costs while bridging the price gap between Squier and the Player series. This move could appeal to budget-conscious players who want something a step above Squier but more affordable than the Player series, ensuring Fender remains competitive across all price points. At the same time, look who's going to pay for any tariff related price increases.
Naturally, you can get US-made Stratocasters already—they just cost more.
Fender is not going to stop importing guitars from their factory in Ensenada, Mexico, which is just 100 miles from their U.S. factory in Corona, CA. The new Indonesian-made Standards will help minimize potential price increases across all products, regardless of their origin. But one way or another, it's the consumer who will pay more.
Getting around tariffs with a logo change—now that's 4D-Chess!