- Companies that make Crocs, Roombas and GoPros are among firms shifting production to countries outside of China as trade tensions between superpowers worsen, according to the Wall Street Journal.
- Apple has also considered moving production of its final assembly out of China to avoid tariffs.
- View Markets Insider for more stories.
US manufacturers are reportedly moving out of China and into other countries to avoid the increased tariffs imposed by the Trump administration according to The Wall Street Journal.
Companies that make Crocs, Roomba vacuums and GoPro cameras said they are producing goods in other countries to avoid tariffs, which are as high as 25% on $250 billion imports from China.
Furniture maker Lovesac told the Journal that its products made in China dropped from 75% to 60% this year, with CEO Shawn Nelson saying: "We have been shifting production to Vietnam very aggressively." He added that he plans to have no production in China by the end of 2020.
The Journal on Monday reported that imports from China fell by 12% in the year through to May, the biggest decline since the financial crisis.
This comes after Business Insider also reported last month that Apple is looking to move production out of China, though it won’t likely happen any time soon.
iRobot corps, the company that makes Roombas, said it would move production to Malaysia this year, while Crocs said that less than 10% of its goods going to the states will be made in China.
However, firms do not seem to be returning to the US as some may have suspected. Vietnam, India, Taiwan and Malaysia have hugely benefited from the trade war with most of those countries having a spike in exports as firms move away from China.
The Journal reported that imports from Vietnam are up 36% from 2018, according to consulting firm A.T. Kearney, while Vietnam’s exports of computers and electronics to the US surged 72% to $1.8 billion in the first five months of this year according to the country’s latest trade data.
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SEE ALSO: Companies are dodging Trump’s tariffs by sneaking Chinese goods through Vietnam, but their strategy could backfire Read more at https://www.businessinsider.com/companies-dodge-trump-tariffs-sneak-chinese-goods-through-vietnam-2019-6#rpBF2KiGSp5yZodK.99