Section 301 Tariffs Affecting Small Portion of Best Buy Business So Far, CEO Says

Best Buy CEO Hubert Joly estimated that some 7 percent, or $2.3 billion, of the total cost of goods sold were affected by the 10 percent tariffs imposed at the end of September under Section 301, he said during a Nov. 20 Q3 earnings call. Many of the products on that list of goods were accessories, he said. Costs have been mitigated “in a variety of ways” and the impact affects a “very small portion of our business,” he said. Looking to Jan. 1, when tariffs are scheduled to rise to 25 percent, Joly said his personal view is that “the journey may not be linear, [but] the negotiations with China will progress,” and Best Buy is working with vendors to reduce the effects if tariffs do rise at the first of next year.