De’Longhi Skirted Tariffs By Labeling Its Machines As Computers – CoffeeTalk

De’Longhi, a high-end coffee machine maker, has successfully avoided a 15% tariff on its machines by labeling them as computers. The company claims that these machines process data, remember preferences, and deliver outputs, while also being the first one to make coffee. De’Longhi’s marketing materials show that every machine that processes data, gives output, stores information, and runs programs has been exempt from tariffs since April 11th in the United States.

De’Longhi describes two identical models—the De’Longhi Machine and the De’Longhi Computer—with slight variations in specs and about a $100 difference in price. The Machine features an “easy-to-use touchscreen,” while the Computer has “smart input recognition” and built-in memory for recalling user beverage preferences. Both machines can make various types of drinks and have customizable programs.

However, the webpage advertising products as a computer offers a “shop now” function, which leads users to a separate webpage featuring the coffee maker’s Rivelia product line. When attempting to check out, the “Computer” version of the machine is not provided with an option to select the cheaper “Computer” version.

This strategy is considered bold considering the high penalties companies face if they get caught knowingly underpaying a duty. However, there is still a chance that companies may find relief from tariffs following last Friday’s appellate court decision that found most of Trump’s tariffs illegal. The appellate court will allow the tariffs to be implemented until October 14, allowing time for the Supreme Court to weigh in on the decision. If the Supreme Court rules against the president and confirms that the tariffs are illegal, many businesses would likely be eligible to claim a refund on duties previously paid.

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