Plantronics Seeking Supply-Chain ‘Alternatives’ if Hit With Headset Tariffs

Headset maker Plantronics thinks it can limit its exposure to Trade Act Section 301 tariffs on Chinese imports because “we really source our products quite globally,” said CEO Joe Burton on an earnings call last week. The Office of the U.S. Trade Representative is proposing a third tranche of 25 percent tariffs on $200 billion worth of Chinese imports, including goods imported under the Harmonized Tariff Schedule’s 8517.62.00 subheading, which covers Bluetooth headphones (see 1807300002). Plantronics sources a “substantial amount” of its products from Mexico, said Burton. “We do have some in China, but some in many other countries around the world as well.” The impact to Plantronics “obviously” will depend on the “final list of products” for which tariffs get imposed, as well as “the specific rates and implementation timing, which I think is all open at this point,” said Chief Financial Officer Pam Strayer. “We are watching it carefully and to prepare for it, we are looking at alternatives in our supply chain.” The company is “in a good position because we have a manufacturing facility in Mexico,” she said. “It does allow us to potentially reduce some of the impact.”