Tariffs on Mexico and Canada aren’t likely to significantly impact the production of Peloton apparel and Precor equipment, Peloton CFO Liz Coddington told investors last week on the bike makerʼs latest earnings call.
“While the tariffs on imports from Mexico and Canada are currently paused, if all of the tariffs went into effect at the current proposed tariff rates, we would expect to see roughly a 1% impact to our connected fitness products and that’s mainly related to Peloton apparel and Precor,” Coddington said.
“And that estimate also assumes no mitigation. For China only, our unmitigated impact is well under 1% of connected fitness COGS [cost of goods sold],” she added.
On the same call, Peloton President and CEO Peter Stern quelled fears of any major disruption, saying Peloton’s branded hardware products are not affected by existing Chinese tariffs or potential future tariffs on Mexico or Canada. The overall impact is limited, he said, because “most of our revenues come from subscriptions.”
Last week, President Donald Trump imposed 25% tariffs on imports from Mexico and Canada, and 10% additional tariffs on imports from China. However, Trump has since paused tariffs on Mexico and Canada for 30 days, as both countries made progress in negotiations on a bunch of different topics with the US administration.
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