US manufacturers are shifting production to countries outside of China as trade tensions between the two largest economies in the world extend into a second year.
The companies that manufacture Crocs shoes, Yeti beer coolers, Roomba vacuums and GoPro cameras are producing products in other countries to avoid tariffs in the United States of up to 25% on about $ 250 billion of imports from China. Apple Inc.
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It is also considering changing the final assembly of some of its devices outside of China to avoid US tariffs. UU
Furniture manufacturer Lovesac Co.
it manufactures around 60% of its furniture in China, compared to 75% at the beginning of the year. "We have been moving production to Vietnam very aggressively," said Shawn Nelson, executive director of the company in Stamford, Connecticut. Nelson said he plans to have no production in China by the end of next year.
The movements of US companies add to a reordering of global manufacturing supply chains as they prepare for a prolonged period of unequal trade relations. Executives from companies that are moving operations out of China said they expect to keep them that way because of the time and money invested in creating new facilities and changing shipping arrangements. The companies said the changes accelerated after the tariff on many Chinese imports rose to 25% from 10% in May. "Once you move, you do not come back," Nelson said.
An expanded version of this report appears on WSJ.com.
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