Sonos plans to raise prices on certain products later this year, citing newly imposed U.S. tariffs on imports from Vietnam and Malaysia as the main reason. The update came during the company’s third quarter earnings report, where leadership described the tariffs as a significant near-term headwind.

The company manufactures a large share of its U.S. lineup in Vietnam and Malaysia. New rates of roughly 20 percent on Vietnam imports and 19 percent on Malaysia imports are pressuring margins and prompting Sonos to adjust pricing. Executives said they are working with suppliers and retailers to lessen the impact, but some increases are still expected. The scope and timing will vary by product and market.

Earlier this year, Sonos expanded production outside China to reduce exposure to trade policy shifts. The new tariffs affect those alternative sites as well, limiting flexibility and accelerating the need for price changes.

Sonos also pointed to recent software and product improvements to reinforce value. Examples include multiuser TV audio features and updates for its latest headphones. The company says it will continue to ship new capabilities while it navigates the tariff environment.