Apple is reportedly considering moving up to 30 percent of their production from China to Southeast Asia, the latest company to join a small but growing list of firms that are evaluating their supply chains in the region amid continued trade tensions with the U.S.
While the spat between the U.S. and China spurred the decision, Apple intends to restructure its manufacturing operations even if a resolution is reached, according to Nikkei Asian Review.
President Trump and President Xi Jinping are slated to meet at the upcoming G20 summit in Japan, while top trade deputies are expected to relaunch talks after negotiations broke down in May after the Chinese allegedly backtracked on previously agreed upon items.
In the meantime, the White House is moving forward with fresh tariffs on another roughly $300 billion in Chinese imports. The administration has already placed levies on $250 billion in shipments.
As corporate America braces for the outcome of the latest round of talks, some firms are already abandoning China in favor of the U.S., Mexico or countries in Southeast Asia, like Vietnam.
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Below is a list of those who have already announced or are reportedly considering the move:
The action camera company is moving the bulk of its production out of China to Mexico by mid-2019. It will still continue to manufacture its local products in the country.
“Today’s geopolitical business environment requires agility,” GoPro CFO Brian McGee said in December. “We’re proactively addressing tariff concerns.”
The toymaker is shifting most of its production from China to Mexico, Vietnam and India due to Trump’s tariffs.
The footwear and handbag maker, which ships the bulk of its goods from China, is shifting production to Cambodia. Executives at the Pawtucket, Rhode Island-based company previously said prices during the upcoming holiday shopping season would be higher as a result of the increased duties.
"We'd love to make shoes in the United States," CEO Ed Rosenfeld told NPR. But "it's very hard to envision a scenario where we'd make the types of products that we make, at the prices that we make them, in the United States."
Stanley Black & Decker
The firm is shifting production of its hallmark Craftsman brand to the U.S., where it is opening a new facility in Fort Worth, Texas.
The company plans to hire 500 people for the $90 million plant, but will employ robots and other advanced technology to keep production costs in line with those in China.
The athletic footwear maker owned by Warren Buffett’s Berkshire Hathaway is moving production from China to Vietnam, largely due to the new tariffs.
“We’ve had to make a long-term decision on this picture. It’s disruptive, but the reality. So we’ll be predominantly in Vietnam by the end of the year.” CEO Jim Weber told Reuters.
The company is moving the manufacturing of some of its KitchenAid appliances to the U.S. from China.
CEO Bob Swan in June told Bloomberg the company is reviewing its supply chain and whether production can be shifted out of China.
“How do we move goods -- sometimes our customers will move their operations -- and how do we work the global supply chain so less product is coming directly from China to the US that would be subject to tariffs?” he told the outlet.