HP Hastens China Exit as Tariffs Kick a Hole in its Profits

An anonymous reader shares a report: HP is close to ending production of North-America-bound products in China, after US tariffs kicked a hole in its quarterly profits. "A quarter ago, we shared that our goal was to have less than ten percent of the products in North America being shipped from China by September," HP president and CEO Enrique Lores told investors on the company's Q2 2025 earnings call. "We have accelerated that and we share that now almost no products will be coming from China sold in the US by June. It's a very significant acceleration of the plan that we have." "We accelerated the shift of factories out from China into Southeast Asia, into Mexico to a certain extent in the US to mitigate the impact of the change," he added. Lores also revealed that HP has removed the US as a distribution hub for products sold in Canada or to Latin America. Doing so means HP doesn't have to pay tariffs. Read more of this story at Slashdot.

May 29, 2025 - 20:50

HP Hastens China Exit as Tariffs Kick a Hole in its Profits

An anonymous reader shares a report: HP is close to ending production of North-America-bound products in China, after US tariffs kicked a hole in its quarterly profits. "A quarter ago, we shared that our goal was to have less than ten percent of the products in North America being shipped from China by September," HP president and CEO Enrique Lores told investors on the company's Q2 2025 earnings call. "We have accelerated that and we share that now almost no products will be coming from China sold in the US by June. It's a very significant acceleration of the plan that we have." "We accelerated the shift of factories out from China into Southeast Asia, into Mexico to a certain extent in the US to mitigate the impact of the change," he added. Lores also revealed that HP has removed the US as a distribution hub for products sold in Canada or to Latin America. Doing so means HP doesn't have to pay tariffs.