Vizio First to Apply for Tariff Exclusions on Finished TVs Sourced From China

Vizio became the first major TV brand to seek exclusions from the List 4A Section 301 tariffs on finished flat-panel sets from China, filing Tuesday for exemptions on four classifications of 8528.72.64 goods that vary by screen size. Vizio is “working closely” with its third-party original design manufacturers to shift production outside China, posted the vendor in the Office of the U.S. Trade Representative public docket. “Some of the ODMs moved manufacturing to third countries including Mexico in the late Q3 2019 timeframe.” Despite those efforts, it’s “extremely difficult” for Vizio to transfer production to other third countries, including Taiwan, Thailand and Vietnam, “without significant cost” that would “far exceed” the brand's “modest profit margin,” it said. That would “likely” result in a “significant price increase to American consumers,” it said. “Responsibly exploring alternatives to manufacturing, without sacrificing quality, safety, and the low prices that define our brand takes considerable time.” TV imports to the U.S. became a much more Mexican-centric business in October, the second full month of 15 percent tariff exposure for finished sets from China (see 1912060006). More than two-thirds of October’s TV unit imports to the U.S. came from Mexico, while China’s share plummeted to half its October 2018 level. List 4A tariffs took effect Sept. 1 at 15 percent but are due to be rolled back by half sometime after the U.S. and China sign their phase one trade deal at the White House Jan. 15 (see 1912310016).