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Fort Lauderdale, FL, Aug. 22, 2019 (GLOBE NEWSWIRE) -- The Singing Machine Company, Inc. (“Singing Machine” or the “Company”) (OTCQX: SMDM) - the North American leader in home karaoke consumer products - today announced guidance on the anticipated impact from tariffs due to the ongoing trade war with China.
On May 17, 2019 the United States Trade Representative published a list of products imported from China that would be potentially subject to an additional 10% tariff. This new tariff will go into effect on September 1 as announced by President Trump on August 1 (“List 4A”). Singing Machine reports that its microphones are on List 4A and will be subject to the 10% tariff beginning on September 1, 2019.
On August 13, 2019 the USTR announced they would delay the 10% tariff to December 15, 2019 on some goods, including toys, video games, and cell phones (“List 4B”). Singing Machine reports that its karaoke machines are on List 4B and will not be subject to tariff until December 15, 2019.
Gary Atkinson, Company CEO, commented, “We are thankful to the Toy Association and other electronics and retail alliances that have warned of the danger of imposing this tariff prior to the holiday season as those tariffs represent a tax on the American consumer and American businesses. We’re pleased the message was received by the Administration and that they have delayed the tariffs on toys and electronics until December. We expect to ship all of our goods for this season prior to December 15 and therefore we do not anticipate a significant tariff impact for this fiscal year.” Atkinson added, “We firmly disagree with the tactic of imposing tariffs as a tool to settle the ongoing trade war with China. However, we are exploring options to diversify our supply chain to move outside of China in the event these tariffs continue or escalate.”
About The Singing Machine
Based in the US, Singing Machine® is the North American leader in consumer karaoke products. The first to provide karaoke systems for home entertainment in the United States, the Company sells its products world-wide through major mass merchandisers and on-line retailers. We offer the industry's widest line of at-home karaoke entertainment products, which allow consumers to find a machine that suits their needs and skill level. As the most recognized brand in karaoke, Singing Machine products incorporate the latest technology for singing practice, music listening, entertainment and social sharing. The Singing Machine provides consumers the best warranties in the industry and access to over 14,000 songs for streaming and download. Singing Machine products are sold through most major retailers in North America and also internationally. See www.singingmachine.com for more details.
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This press release contains forward‑looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward‑looking statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management and include, but are not limited to statements about our financial statements for the fiscal year ended March 31, 2019. You should review our risk factors in our SEC filings which are incorporated herein by reference. Such forward‑looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward‑looking statement to reflect events or circumstances after the date of this release.