Sonos is currently evaluating the impact of new tariffs implemented by the Trump administration on its supply chain. The company sources its products from Malaysia and Vietnam, both of which have been significantly affected by these tariffs.

This situation could adversely influence Sonos’ pricing strategies and overall plans. Consumers should prepare for an increase in prices across various products due to these tariffs.

The U.S. president’s decision to impose tariffs on a wide range of items means that everyday goods, including household electronics such as soundbars, are likely to see price surges. Sonos, known for its upscale audio equipment, may be among those most affected.

Despite facing operational challenges with its app, the company has continued to launch new products. However, the combination of their already premium pricing and potential tariff-induced increases could push them beyond what consumers are willing to pay.

In earlier efforts to mitigate risks, Sonos diversified its supply chain, moving much of its production to Malaysia and Vietnam. During a recent earnings call, CFO Saori Casey expressed optimism about the minimal impact of tariffs on their gross margin.

However, this optimism may be unfounded with recent tariffs hitting Malaysia and Vietnam at rates of 24% and 46%, respectively. These high import taxes are likely to squeeze Sonos’ profitability, which is especially concerning given that the company is not in the same financial league as giants like Apple or Microsoft.

Sonos has acknowledged the new tariffs and stated that they will factor these changes into their business strategy. With limited options available, if the company decides not to absorb the costs, it may result in increased prices for consumers.

The future remains uncertain, and customers will have to wait and see how Sonos responds to this challenge.