Best Buy is taking multiple steps to counter effects of tariffs, Chief Financial Officer Matt Bilunas said on a Nov. 26 earnings call. He said the retailer is bringing in products ahead of tariff implementation; making strategic decisions on vendor and SKU assortment; instituting promotional and pricing strategies and sourcing changes; and developing strategies with vendor partners. The most relevant tariffed categories for Best Buy for Section 301 List 4A products are TVs, headphones and smartwatches; and for List 4B products are computers, mobile phones and game consoles, Bilunas said.

CBP created Harmonized System Update (HSU) 1916 on Nov. 20, containing 27,011 Automated Broker Interface records and 5,072 Harmonized Tariff Schedule records, it said in a CSMS message. The update includes recently announced exclusions and other changes related to the Section 301 tariffs (see 1911120017 and 1911200043). Other changes involve Uruguay beef export certifications (see 1911220036), cotton import fees (see 1910160034) and coffee imported to Puerto Rico (see 1804130023).

International Trade Today is providing readers with some of the top stories for Nov. 18-22 in case they were missed.

The Office of the U.S Trade Representative issued some new product exclusions from Section 301 tariffs on the third list of products from China, according to a pre-publication copy of a notice posted to the agency’s website Nov. 26. The product exclusions apply retroactively to Sept. 24, 2018, the date the tariffs on the third list took effect, and will remain in effect until Aug. 7, 2020. New subheading 9903.88.35 will be used for these products.

The Office of the U.S. Trade Representative issued a new set of product exclusions from the 25 percent Section 301 tariffs on goods from China. The exclusions include products from the third list of Section 301 goods. The new exclusions "are reflected in 32 specially prepared product descriptions, which cover 39 separate exclusion requests," according to the notice.

Bose said it’s “actively pursuing” production-sourcing outside China for the two categories of products for which it applied Friday for exclusions from the 15 percent List 4A Section 301 tariffs that took effect Sept. 1. The S1 Pro Bluetooth portable speaker system that Bose imports under the 8518.22.00.00 tariff code “is built to unique specifications and is currently produced only in China,” said one tariff request posted in the U.S. Trade Representative’s public docket. “We are exploring alternatives, but it will require a significant amount of time and investment to move manufacturing.” The S1 Pro sells for $599 to a wide variety of target audiences, including campers and amateur DJs. The noise-cancelling wireless headphones Bose sources from China under the 8517.62.00.90 tariff code contain a “microphone system that automatically adapts to the user’s environment to isolate voice from competing background noises,” said Bose in its other exclusion request. Bose markets several models of noise-cancelling wireless headphones, but the exclusion request was not product-specific as it was for the S1 Pro. Bose in both requests blocked as “business confidential” its arguments for seeking an exemption, including its discussion of efforts to find sourcing in the U.S. or third countries. Public responses for or against the exclusion requests are due Dec. 6 in the public docket, and Bose would have seven days to reply. Bose didn’t comment Friday.

IRobot began producing “limited quantities” of one Roomba 600 Series entry-level robotic-vacuum model in Malaysia to reduce its exposure to the 25 percent List 3 Section 301 tariffs on Chinese goods, said the company Thursday. It plans to “accelerate volume production” of that model in Malaysia beginning Q1, and may shift production of additional models there “over the coming quarters and into 2021.”

IRobot started making some models of its Roomba vacuum line in Malaysia as part of an effort to shift away from China, the company said in a Nov. 21 news release. “Establishing manufacturing operations in Malaysia is a fundamental component in our initiative to diversify iRobot's manufacturing and supply chain capabilities, while also mitigating our exposure to current and prospective tariffs on products that are imported from China," said Colin Angle, CEO at iRobot. The company previously announced the plans to begin a production line in Malaysia (see 1910230027).

Sonos bought voice platform company Snips for about $37.5 million cash, its first purchase as a public company. CEO Patrick Spence called it an artificial intelligence voice platform for connected devices that provides “private-by-design voice technology." It wasn’t clear how Snips will coexist with Amazon and Google, whose voice technologies are in mic-equipped Sonos products. Spence wrote Thursday, “We do not plan to replicate the big tech ‘ask anything voice services’ but expect this acquisition will add to our customers’ ease of use and control.” The company didn’t respond to our questions. Sonos forecasts a $30 million blow to FY 2020 profit resulting from the 15 percent Section 301 List 4A tariffs that took effect Sept. 1, said Chief Financial Officer Brittany Bagley on a Q4 call Thursday. Most of the impact will be in the holiday quarter, she said.

When the Ways and Means Trade Subcommittee held a hearing on the U.S.-Japan mini-deal, the Office of the U.S. Trade Representative declined to send anyone to testify. Rep. Ron Kind, D-Wis., one of the biggest boosters of free trade in the Democratic caucus, said that absence represents “the disdain the current administration has" for Congress, and its role in setting trade policy. He predicted that "this will have serious ramifications for the next time" Congress has a vote on fast-track authority.