HP says 90% of products made to the US will be manufactured outside China

HP has announced that by October 2025, 90% of products sold in the US will be manufactured outside China. The company seeks to reduce the impacts of tariffs imposed by the US government on Chinese imports. Although China remains a relevant industrial hub, HP already relocates production to other regions.

According to HP CEO, Enrique Lores, the company anticipated the tariff scenario and adjusted the planning. Thus, he pointed out that the company has made the necessary management to include this type of activity in manufacturing strategies for the coming years.

“We managed the current increases in China’s tariffs and include this in our strategy for the coming years”said Lors.

US administration increased by 10% import rates on products manufactured in China. Thus, manufacturers like HP and Dell have chosen to adopt measures to try to reduce these costs, and production relocation is one of the main strategies.

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HP adjusts production to meet US demand

Production transfer requires planning and does not occur immediately. To keep the offer stable and avoid price variations, HP reinforced stocks in the last quarter. The company implemented this strategy to mitigate financial impacts, but had to deal with a temporary increase in inventory levels.

HP CFO, Karen Parkhill, explained that the company has made strategic decisions to balance costs. Despite the benefits, this strategy temporarily impacted the company’s cash flow.

“We increased stocks and took advantage of buying opportunities to reduce future expenses”Afirmou Parkhill.

While HP details its changes, competitors like Dell highlight a different approach. Dell’s COO Jeffrey Clarke said the company has structured a flexible global supply chain to mitigate tariff impacts. If you can’t absorb all additional costs, Dell can readjust prices.

Fonte: Toms Hardware