While going public on Friday, smart speaker company Sonos warned potential investors that Donald Trump’s trade war may force product prices up.
Business Insider UK reported that in its public offering filing, Sonos “listed trade disputes between the US and China as a potential drawback on its business” — the same day the president’s tariffs on $34 billion worth of imported Chinese goods took effect.
“If significant tariffs or other restrictions are placed on Chinese imports or any related counter-measures are taken by China, our revenue and results of operations may be materially harmed,” the company wrote in its filing.
“The materials subject to these tariffs to date do not impact our raw material costs,” the filing read. “However, if further tariffs are imposed on a broader range of imports, or if further retaliatory trade measures are taken by China or other countries in response to additional tariffs, we may be required to raise our prices, which may result in the loss of customers and harm our reputation and operating performance.”