IRobot slashed operating income projections for the fiscal year ending Jan. 1 on concerns over higher supply chain costs, price increases and Section 301 tariffs, Chief Financial Officer Julie Zeiler said on an Oct. 28 earnings call. Q3 gross margin declined by 11 percentage points, with 60% of the decrease due to an unexpected $14 million in tariff costs and “supply chain headwinds.”
Section 301 (too broad)
The following lawsuits were filed at the Court of International Trade during the week of Oct. 18-24:
International Trade Today is providing readers with the top stories from Oct. 18-22 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
Eleven of the 49 Democratic senators have told U.S. Trade Representative Katherine Tai that the inputs for manufacturing protective gowns and masks and finished masks and surgical gowns should not continue to receive exclusions to Section 301 duties. The previous administration decided that goods needed to respond to the COVID-19 pandemic should not face higher tariffs, but these senators, led by Ohio's Sen. Sherrod Brown and Wisconsin's Tammy Baldwin, argue that domestic manufacturers need the tariff barrier to be competitive.
The Office of the U.S. Trade Representative announced Oct. 21 that the U.S. will not impose tariffs on goods from European countries over digital services taxes, as those countries have reached a settlement with the Treasury Department about the transition from DSTs to a new approach to taxing multinational firms. The agreement covers suspended tariffs on goods from Italy, Spain, France, the United Kingdom and Austria -- all those proposed tariffs will now be terminated, not just suspended.
The following lawsuits were filed at the Court of International Trade during the week of Oct. 11-17:
The Footwear Distributors and Retailers of America say they know the administration cannot help with the spike in shipping costs, but it could ease inflation by removing Section 301 tariffs on children's shoes. In a letter sent Oct. 19, the group said, "Kids’ shoe prices have now reached the highest in over 70 years, causing massive sticker shock for those who can least afford it. The rising costs we see in the shoe supply chain are a contributing factor for shoe retail price increases. That has been the lead, but the real headline has been buried. Government import taxes now make up 30 percent of the price of certain types of children’s shoes at big box retailers where most working-class families shop."
An executive with a logistics company with more than 100,000 customers talked about tariffs as a contributor to supply chain strains. So did the owner of a 200-person candy manufacturer, and a board member from the National Association of Home Builders. While tariffs were not the top concern for businesses mentioned at the hearing on how global supply chain kinks are hurting small businesses, companies said lifting them, even temporarily, would ease the pain of high shipping costs.
International Trade Today is providing readers with the top stories from Oct. 11-15 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
RANCHO MIRAGE, California -- Lawyers are seeing a rise in cases filed against customs brokers for failing to meet their fiduciary duties, said Cameron Roberts, a Roberts & Kehagiaras trade attorney. Many of the cases involve importers who allege their brokers didn’t correctly advise them about issues related to forced labor, Section 301 tariffs and certain agriculture imports, he said. “All of these issues are being put at the foot of the broker,” Roberts said, speaking during the Oct. 15 Western Cargo Conference.