CTA hired Akin Gump to draft a complaint that, if pursued in the U.S. Court of International Trade, would seek a preliminary injunction blocking the Trade Act Section 301 tariffs on $200 billion of Chinese imports before the duties are scheduled to rise to 25 percent on Jan. 1, we learned from those familiar with the plans. The association is shopping the draft around with other anti-tariff trade groups, seeking their legal and financial backing to support a court challenge, they said.

The Consumer Technology Association has hired Akin Gump to draft a complaint, which, if pursued in the Court of International Trade, would seek an injunction blocking the Section 301 tariffs on $200 billion worth of Chinese imports before the duties are scheduled to rise to 25 percent on Jan 1., said several sources familiar with CTA’s plans. The association is shopping the draft around with other anti-tariff trade groups, seeking their legal and financial backing to support a court challenge, the sources said.

IRobot’s decision not to pass along to retailers or consumers the higher costs of the 10 percent Trade Act Section 301 tariffs that took effect Sept. 24 on all vacuum cleaners manufactured in China will cost the company about $5 million in Q4 gross margin, said CEO Colin Angle on a Wednesday earnings call. The company is discussing “a lot of different scenarios about how to tackle” the 25 percent tariffs that take effect Jan. 1, said Angle. Many of those scenarios “assume some level” of pass-along price increases, “but we haven’t exactly settled on the final answer yet there,” he said. With the market experiencing “continuing strong growth,” iRobot has “some ability to absorb an impact without putting us in a dangerous situation,” he said.

IRobot’s decision not to pass along to retailers or consumers the higher costs of the 10 percent Trade Act Section 301 tariffs that took effect Sept. 24 on all vacuum cleaners manufactured in China will cost the company about $5 million in Q4 gross margin, said CEO Colin Angle on a Wednesday earnings call. The company is discussing “a lot of different scenarios about how to tackle” the 25 percent tariffs that take effect Jan. 1, said Angle. Many of those scenarios “assume some level” of pass-along price increases, “but we haven’t exactly settled on the final answer yet there,” he said. With the market experiencing “continuing strong growth,” iRobot has “some ability to absorb an impact without putting us in a dangerous situation,” he said.

Arris emphasized “serious concerns” in meetings last week with aides to FCC Commissioners Mike O’Rielly and Jessica Rosenworcel about “harmful effects” the third tranche of Trade Act Section 301 tariffs will have on “U.S. 5G leadership" and broadband deployment, it posted Tuesday in docket 13-49. The 10 percent tariffs took effect Sept. 24 on “core broadband infrastructure and networking equipment and other critical inputs for wireless and wireline connectivity, as well as consumer broadband equipment,” and will “automatically increase” to 25 percent Jan. 1 (see 1809240025 or 1809240011), said Arris. “At just the 10 percent level,” Arris estimates the fees will impose $200 million a year “in additional costs on its equipment and devices.” The levies already had “serious business implications” for Arris when an analyst downgraded the stock because of the expected higher tariff-related costs, it said. The tariffs “risk slowing deployment of 5G and broadband more generally, diverting resources away from 5G and other broadband research and development efforts,” it said. Arris tried to enlist FCC support for an “exclusion process” for the third tranche of duties to give affected companies “additional time to make adjustments to their operations and mitigate the harms,” it said. The Trump administration has announced no process for requesting exemptions on the third tranche of tariffs as it did on the first two.

Arris emphasized “serious concerns” in meetings last week with aides to FCC Commissioners Mike O’Rielly and Jessica Rosenworcel about “harmful effects” the third tranche of Trade Act Section 301 tariffs will have on “U.S. 5G leadership" and broadband deployment, it posted Tuesday in docket 13-49. The 10 percent tariffs took effect Sept. 24 on “core broadband infrastructure and networking equipment and other critical inputs for wireless and wireline connectivity, as well as consumer broadband equipment,” and will “automatically increase” to 25 percent Jan. 1 (see 1809240025 or 1809240011), said Arris. “At just the 10 percent level,” Arris estimates the fees will impose $200 million a year “in additional costs on its equipment and devices.” The levies already had “serious business implications” for Arris when an analyst downgraded the stock because of the expected higher tariff-related costs, it said. The tariffs “risk slowing deployment of 5G and broadband more generally, diverting resources away from 5G and other broadband research and development efforts,” it said. Arris tried to enlist FCC support for an “exclusion process” for the third tranche of duties to give affected companies “additional time to make adjustments to their operations and mitigate the harms,” it said. The Trump administration has announced no process for requesting exemptions on the third tranche of tariffs as it did on the first two.

The Retail Industry Leaders Association sent President Donald Trump a letter praising his plan to meet with the Chinese president, and said that raising tariffs on nearly $200 billion in Chinese imports to 25 percent on Jan. 1 would dampen the economy. The organization said it supports "targeted trade actions against intellectual property theft, unfair dumping or subsidies," but not the broad application of Section 301 tariffs. Direct engagement with President Xi "is vital to resolving this trade dispute and ensuring it does not undermine our nation’s record-setting economic expansion and hurt American families," RILA President Sandra Kennedy wrote Oct 24. Meanwhile, The Wall Street Journal on Oct. 25 reported that the U.S. won't engage in trade talks with China until the country's government presents a proposal to address U.S. intellectual property concerns.

Customs and Border Protection is substantially increasing staffing levels at its Office of Regulatory Audit to keep up with “the revenue on the table” from the imposition of Trade Act Section 301 tariffs on Chinese imports and the Trump administration’s push for more enforcement, said Tom Jesukiewicz, director of regulatory audit’s Los Angeles field office, at the recent Western Cargo Conference. CBP’s enforcement “push” this year will be on electronics, Jesukiewicz said. There are going to be “a lot of companies hit over the next few months,” he said.

Arris emphasized “serious concerns” in meetings last week with aides to FCC Commissioners Mike O’Rielly and Jessica Rosenworcel about “harmful effects” the third tranche of Trade Act Section 301 tariffs will have on “U.S. 5G leadership" and broadband deployment, it posted Tuesday in docket 13-49. The 10 percent tariffs took effect Sept. 24 on “core broadband infrastructure and networking equipment and other critical inputs for wireless and wireline connectivity, as well as consumer broadband equipment,” and will “automatically increase” to 25 percent Jan. 1 (see 1809240025 or 1809240011), said Arris. “At just the 10 percent level,” Arris estimates the fees will impose $200 million a year “in additional costs on its equipment and devices.” The levies already had “serious business implications” for Arris when an analyst downgraded the stock because of the expected higher tariff-related costs, it said. The tariffs “risk slowing deployment of 5G and broadband more generally, diverting resources away from 5G and other broadband research and development efforts,” it said. Arris tried to enlist FCC support for an “exclusion process” for the third tranche of duties to give affected companies “additional time to make adjustments to their operations and mitigate the harms,” it said. The Trump administration has announced no process for requesting exemptions on the third tranche of tariffs as it did on the first two.

DALLAS -- Audio companies are bracing for the impact of the 10 percent Trade Act Section 301 tariffs on Chinese imports that took effect a month ago (see 1809240011) and are holding out hope that the Jan. 1 increase to 25 percent won't happen, vendors told us at the Home Technology Specialists of America fall meeting.