Leading PC makers have been shifting their production away from China for several years already, and now that the Trump administration is imposing prohibitive tariffs on imports from China, they are not caught completely off guard. HP will continue to shift production to other regions, and by the end of its fiscal year, 90% of its products for North America will be made outside of China. Dell also expects its diversified supply chain to lower the impact of tariffs but will have to pass the extra costs to end users if it cannot mitigate them.
" By the end of fiscal year 2025 [in October], we expect more than 90% of HP products sold in North America will be built outside of China," said Enrique Lotes, chief executive of HP, during the company's earnings conference call with analysts and investors. "China will continue to be an important manufacturing hub for the rest of the world. As we look ahead, we are managing the current tariff increases on China and have included them in our outlook."
