GoPro to Move Camera Production Out of China to Avoid US Tariffs

GoPro will move part of its camera production out of China, in response to the US-China trade war.

The move will help the company avoid the US's 10 percent tariffs on Chinese-assembled products—which includes digital cameras—amid ongoing market worries that the Trump administration could impose more tariffs on imports from the country.

"Today's geopolitical business environment requires agility, and we're proactively addressing tariff concerns by moving most of our US-bound camera production out of China," GoPro's chief financial officer, Brian McGee, said on Monday.

The company plans to move US camera production out of China in the summer of 2019, but did not specify where it will be going. Non-US bound camera manufacturing will remain in China.

GoPro made the announcement even after the US and China agreed to delay a planned rate hike. Originally, the White House planned to raise the tariff rate from 10 percent to 25 percent in January. But the US has decided to hold off until March in the hopes that both countries will reach a trade agreement by then.

GoPro said it made the decision to avoid the prospect of facing new US tariffs in the future. "We believe this diversified approach to production can benefit our business regardless of tariff implications," said McGee, who expects the manufacturing move to come at a "relatively low cost."

GoPro isn't the only tech firm changing up its supply chain. Last month, PC maker Asus said it's also considering moving certain product manufacturing from China to other locations such as Vietnam, Indonesia, and Taiwan.

Whether the US can actually reach a deal with China on trade has also been complicated by the arrest of Huawei's chief financial officer in Canada. Meng Wanzou, the daughter of Huawei's founder, is being detained on accusations she helped the Chinese company circumvent US sanctions on Iran. She now faces extradition to the US.

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