HP prepares for tariff challenges

Jan 27, 2025 | 0 comments

HP diversifies supply chain globally, reducing reliance on China amid potential U.S. tariff impacts.

HP Inc. is proactively adjusting its supply chain in anticipation of potential tariffs under the Trump administration. CEO Enrique Lores highlighted that the company has been enhancing its supply chain resilience over the past three years by establishing factories in various global locations, positioning HP favourably against competitors.

According to news reports, HP plans to relocate a substantial portion of its PC production out of China to countries like Thailand, targeting to shift at least 50% of its notebook manufacturing within the next two to three years. This decision underscores HP’s commitment to reducing dependence on China amid escalating trade tensions and potential tariff implications.

Despite these proactive measures, Lores indicated in an interview at Davos, that HP is not currently factoring potential tariff impacts into its financial forecasts. The company intends to collaborate closely with the incoming administration to navigate these challenges effectively, aiming to serve both customers and shareholders optimally.

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