Skip to main content

Seeing information about Trump’s Trade War

 

If I purchase a Sonos product now, will I have to pay an additional 25 per cent now, or are the products made prior to the trade war tariff free?

Are the Tariffs compounding?  Will the 25% tariff on Chinese components and the 25% tariff on Canadian products mean I pay an extra 50% for Sonos?  If yes, does that mean when I have it shipped to Canada, do I have to pay an extra 75% or just 25%?

Moderator Note: Modified in accordance with the Community Code of Conduct.

Hi ​@Snow Mexican 

Welcome to the Sonos Community!

Being in the UK (and being more tech support than sales support), I don’t really have that information for you.

I recommend you get in touch with a local sales department of ours - please see our contacts page for a number to call, or start a chat.

I hope this helps.

 


Any tariff on China doesn’t even enter the picture, Sonos is manufactured in Malaysia.  Matter of fact, they moved manufacturing out of China in 2019 because of (You guessed it!) tariffs.

 

https://www.slashgear.com/1548390/sonos-products-where-they-are-made/


Tariffs are collected as a shipment enters a country — based on the ‘cost’ of the products inside the shipment vehicle/container. Since items entering the country are usually purchased on a business account (actual payment will be in the future) it’s not obvious how ‘cost’ is established. I suppose that some sort of invoice will accompany each container and tariffs will be paid at the port of entry based on that invoice. The true ‘cost’ of an item varies with currency fluctuations.

The manufacturing ‘cost’ will include any tariffs incurred on raw parts and materials imported by the manufacturing plant. As a finished product leaves the factory and is imported into a country, each country will impose its own tariffs. If a product is imported into one country, then exported to another, there may be added tariffs.

There are also tariff games. A product will incur tariff if imported from ‘A’, however, there are no tariffs on products imported from ‘B’. Therefore a product can avoid the tariff if first shipped through ‘B’. This is viable when shipping costs are less than any tariffs. This scheme does not work so well for time sensitive items, such as fresh produce.

Unless the final purchaser pays for all of this, a business is not sustainable.