RE:No news on tariffs My mistake, there is an update
Pioneering continues to work with legal counsel in the U.S. to pursue a potential exemption from these tariffs based on a similar exclusion recently recognized by the U.S. Customs and Border Patrol Service. However, there can be no assurance that the Company will be successful in having its products exempted from the tariffs, nor can there be any assurance that the U.S. government will choose to reduce or eliminate the tariffs. As a result, the Company has assumed that it to offset the impact of these tariffs including:
• Cost reduction discussions with its manufacturing partners.
• Managing operating expenses and limiting those that do not directly contribute to sales growth or contribute
to new product development.
• Eliminating special volume incentives and discount programs.
• Negotiated price increases with its key distributors, which have been accepted and begin January 1, 2021.
While the Company expects that these measures will help to mitigate the consequences of the tariffs and improve its gross profits in 2021, there can be no assurance of the extent to will continue to pay the tariffs for the foreseeable future and is exploring and implementing initiatives
tariffs on the Company’s costs and profitability.