Kenwood Shifts its Tariff Strategy

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Kenwood changes pricing due to tariffs

Kenwood is changing its pricing strategy in reaction to tariffs on Chinese goods including amplifiers.

It is switching to an across the board 2 percent increase in dealer cost on ALL Kenwood products even if they are not made in China, nor subject to a tariff, confirmed VP Sales & Marketing Mike Roberts. And it is reversing its June 1 price hike on amplifiers. All amplifiers return to the original pricing prior to June 1 plus the new 2 percent cost increase.

Minimum Advertised Price (MAP) will remain the same on all Kenwood products.

By spreading out a price hike across all products, Kenwood prevents larger increases on specific products, including high end amplifiers. Under the earlier Kenwood program, amplifier prices had risen from $20 on MAP pricing up to $200.

Under the new 2 percent increase, a speaker that costs a dealer $50 will increase in price by only a dollar, said Roberts, adding, “As you will see, the impact is negligible and we feel strongly this was the best course to minimize the effect on everyone downstream.”

On June 1, the tariff on amplifiers (List 3) was enacted at 25 percent. Finished car audio speakers were hit with a 15 percent tariff September 1 (List 4A).

Tariff List Date ImposedTech Product
List 1

$34B @ 25%

July 6, 2018Connected thermostat, some wires
List 2 $16B @ 25%Aug 23, 2018Semiconductors, some wires
List 3 $200B @ 10%Sept 24, 2018(moved to 25% June 15)Amplifiers, in-dash radios, certain audio wires, streaming media players, printed circuit assemblies price could increase by 23%, totaling $1.8 billion; routers, modems, servers, desktop PCs without monitor, PC components, chargers, power adapters, cables, cords, surge protectors, smart home security cameras, car backup cameras, video conference cameras.
List 4A @ 15%Sept 1, 2019$52B worth of consumer tech including Smart speakers, car audio speakers, Bluetooth speakers and wireless headsets/earbuds, smartwatches, fitness trackers, AR/VR, TVs, desktops, digital cameras (including drones) and lithium batteries.
List 4B @ 15%Dec. 15, 2019$115B worth of consumer tech including smartphones, laptops/tablets, toy drones and video game consoles.

 

 

 

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