HP Inc. is shifting away from manufacturing products in China for the North American market, responding to substantial tariff impacts that hurt its profits. The company's CEO, Enrique Lores, announced an accelerated transition plan moving production to Southeast Asia and Mexico, with virtually no products from China reaching the US by June. The quarterly revenue increased slightly, but profits fell short of expectations due to unforeseen tariff costs. HP plans to adjust pricing strategies to mitigate these challenges, aiming to ease the tariff impacts by Q4 2025.
"A quarter ago, we shared that our goal was to have less than ten percent of the products in North America being shipped from China by September... we accelerated that and now almost no products will be coming from China sold in the US by June."
"Tariff increases announced in April were higher than expected... the full benefit of these mitigating actions can take a few months lead time depending on the scope."
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