Fitbit will shift production to "outside China" starting in January for “effectively all of its trackers and smartwatches” to escape exposure to the tariffs on Chinese goods, said the company Wednesday. "Those products will no longer be of Chinese origin and therefore not subject to Section 301 tariffs,” said Fitbit, without disclosing where it's moving its sourcing. Smartwatches and fitness trackers, comprising the entire Fitbit product line, were hit with 15 percent List 4A tariffs Sept. 1 as part of the broad category of 8517.62.00.90 goods that also includes smart speakers and Bluetooth headphones (see 1908130028). The company began exploring potential alternatives to China last year, said Chief Financial Officer Ron Kisling. It altered its supply chain and manufacturing operations with “additional changes underway,” the company said. Fitbit said it will give additional details, including the financial implications, on its Q3 call within the month. Fitbit devices are assembled in China from parts and components sourced from Taiwan and Singapore, but shifting final assembly outside China “has been a very big challenge for us,” testified Executive Vice President-General Counsel Andy Missan at a Section 301 hearing in June. The devices require “high-precision assembly and high volume,” he said then. "We have not been able to find those characteristics in other locations,” despite looking throughout Southeast Asia, he said.
August unit imports from China of the broad swath of smart speakers, Bluetooth headphones and smartwatches shipped here under the 8517.62.00.90 tariff code increased 21 percent sequentially from July to 11.78 million, said Census Bureau statistics accessed Wednesday through the International Trade Commission’s DataWeb tool. August shipments of 8517.62.00.90 goods from China were the highest in that category for any 2019 month. The National Retail Federation expects U.S. imports to “surge” before the 15 percent List 4B Section 301 tariffs take effect Dec. 15 on Chinese goods, said the association Wednesday. “This is the last chance to bring merchandise into the country before virtually everything the United States imports from China comes under tariffs,” said NRF. “Retailers are doing all they can to mitigate the impact of tariffs on their customers.”
The National Retail Federation expects U.S. imports from China to “surge” before the 15 percent List 4B Section 301 tariffs take effect Dec. 15 on Chinese goods, said NRF Wednesday. “This is the last chance to bring merchandise into the country before virtually everything the United States imports from China comes under tariffs,” said NRF. “Retailers are doing all they can to mitigate the impact of tariffs on their customers.” The tariffs' Q4 impact on prices "will vary by retailer and product," it said. It urged the Trump administration to use the two days of U.S.-China trade talks opening Thursday in Washington “to make progress toward ending the trade war and return to policies that promote long-term economic growth and prosperity for American families.” NRF estimates U.S. ports handled 1.97 million 20-foot-long cargo container equivalents in August. That was the highest monthly volume since the 2 million containers imported last October, it said. NRF forecast November imports will be up 8.9 percent year over year and tie those of August, as retailers use the last full month before List 4B takes effect to rush product in. August TV unit imports from China increased 22.3 percent sequentially from July (see 1910070050). August unit imports from China of the broad swath of smart speakers, Bluetooth headphones and smartwatches shipped here under the 8517.62.00.90 tariff code increased 21 percent sequentially from July to 11.78 million, said Census Bureau statistics accessed Wednesday through the International Trade Commission’s DataWeb tool. August shipments of 8517.62.00.90 goods from China were the highest in that category for any 2019 month. Experts will debate whether the August spikes were evidence of importers rushing product in to beat the 15 percent Section 301 tariffs on finished TV sets and 8517.62.00.90 goods from China that took effect Sept. 1. Skeptics said they doubted tariffs were behind the August surges because importers had little time after the duties were announced Aug. 1 to put goods on a boat in China and get them through U.S. ports before Sept. 1. "Absolutely," emailed JLab CEO Win Cramer Wednesday when we asked if he rushed in Bluetooth earbuds and other 8517.62.00.90 goods during August. "Everyone I know brought over as much as they could as fast as they could, JLab included," he said.
Fitbit will shift production to "outside China" starting in January for “effectively all of its trackers and smartwatches” to escape exposure to the tariffs on Chinese goods, said the company Wednesday. "Those products will no longer be of Chinese origin and therefore not subject to Section 301 tariffs,” said Fitbit, without disclosing where it's moving its sourcing. Smartwatches and fitness trackers, comprising the entire Fitbit product line, were hit with 15 percent List 4A tariffs Sept. 1 as part of the broad category of 8517.62.00.90 goods that also includes smart speakers and Bluetooth headphones (see 1908130028). The company began exploring potential alternatives to China last year, said Chief Financial Officer Ron Kisling. It altered its supply chain and manufacturing operations with “additional changes underway,” the company said. Fitbit said it will give additional details, including the financial implications, on its Q3 call within the month. Fitbit devices are assembled in China from parts and components sourced from Taiwan and Singapore, but shifting final assembly outside China “has been a very big challenge for us,” testified Executive Vice President-General Counsel Andy Missan at a Section 301 hearing in June. The devices require “high-precision assembly and high volume,” he said then. "We have not been able to find those characteristics in other locations,” despite looking throughout Southeast Asia, he said.
There's the possibility of an agreement on currency manipulation this week, according to U.S. Chamber of Commerce Head of International Affairs Myron Brilliant. Brilliant, who spoke with both China's chief negotiator and members of the Trump administration ahead of the Oct. 10 negotiating session, told reporters on a conference call that if the two sides come up with a currency agreement, that might lead to a reprieve for importers who are expecting 25 percent tariffs to go to 30 percent on Oct. 15.
Sharp scuttled Q4 plans to develop and sell premium 4K and 8K TVs in the U.S. under its own brand, emailed Sharp Home Electronics President Jim Sanduski Wednesday. “Time was too short and so we have elected not to launch any TVs this fall,” he said.
Fitbit will shift production to "outside China," starting in January, for “effectively all of its trackers and smartwatches” to escape exposure to the tariffs on Chinese goods, the company said Oct. 9. "[T]hose products will no longer be of Chinese origin and therefore not subject to Section 301 tariffs.” Smartwatches and fitness trackers, comprising the entire product line, were hit with 15 percent List 4A tariffs Sept. 1 as part of the broad category of 8517.62.00.90 goods that also includes smart speakers and Bluetooth headphones (see 1908140031). The company began exploring potential alternatives to China last year, Chief Financial Officer Ron Kisling said. It altered its supply chain and manufacturing operations with “additional changes underway,” the company said. Fitbit will give additional details on its Q3 call within the month.
CBP's role in considering Section 301 exclusion requests is limited to a review of drafted exclusions from the Office of the U.S. Trade Representative, a CBP spokesperson said. Asked whether CBP sees the full exclusion requests in their entirety, the spokesperson said "CBP does not review individual petitions for exclusions to the remedy." USTR "evaluates and approves requests for exclusions to the China 301 remedy," the CBP spokesperson said.
August TV unit imports from China increased 22.3 percent sequentially from July, and 37.5 percent year over year, according to newly published Census Bureau statistics accessed Sunday through the International Trade Commission’s DataWeb tool. Observers will debate whether the August spikes were evidence of importers speeding product through U.S. ports to beat the 15 percent Section 301 tariffs on finished TV sets from China that took effect Sept. 1.
Reports of unexpectedly high demand for the iPhone 11 were borne out Saturday in New York when we canvassed stores in search of the iPhone 11 Pro.