Sonos may have reason to worry, thanks to the latest round of tariffs issued by President Trump’s administration.
“You may recall we underwent a significant effort to diversify our supply chain a few years ago, which resulted in a manufacturing of nearly all of our U.S.-bound products shifting to Malaysia and Vietnam,” Sonos CFO Saori Casey said during the company’s most recent earnings call. As a result, we expect tariffs to have a minimal impact to our gross margin in Q2 based on what we know today.”
Unfortunately for Sonos, tariffs of 24 percent and 46 percent were levied against Malaysia and Vietnam, respectively, last week. The company’s supply chain diversification may not have the financial effect that was intended, as evidenced by its stock dropping 15 percent following the tariff announcement.
For its part, the company is “closely monitoring developments related to the proposed tariffs and actively assessing potential implications for our business, customers, and supply chain,” Sonos’ Erin Pategas tells The Verge. “At this time our focus remains on delivering the best audio experiences for our customers.”
See also: Sonos cancels its TV streaming box
