HP Hastens China Exit as Tariffs Kick a Hole in its Profits (theregister.com)
- Reference: 0177852745
- News link: https://slashdot.org/story/25/05/29/1450252/hp-hastens-china-exit-as-tariffs-kick-a-hole-in-its-profits
- Source link: https://www.theregister.com/2025/05/29/hp_inc_q2_2025/
> HP is [1]close to ending production of North-America-bound products in China, after US tariffs kicked a hole in its quarterly profits. "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," HP president and CEO Enrique Lores told investors on the company's Q2 2025 earnings call. "We have accelerated that and we share that now almost no products will be coming from China sold in the US by June. It's a very significant acceleration of the plan that we have."
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> "We accelerated the shift of factories out from China into Southeast Asia, into Mexico to a certain extent in the US to mitigate the impact of the change," he added. Lores also revealed that HP has removed the US as a distribution hub for products sold in Canada or to Latin America. Doing so means HP doesn't have to pay tariffs.
[1] https://www.theregister.com/2025/05/29/hp_inc_q2_2025/
HP (Score:4, Insightful)
This company fell off my radar over 15 years ago. I used to swear by HP printers until I started swearing at them. Total junk. Now I see you need to subscribe just to use them. Nope, nope, nope.
Key question (Score:2, Insightful)
The key question is 'how many well paid American jobs did this create' of course. I don't see the answers here.
Still jobs elsewhere (Score:2)
So the tariffs are only impacting China and not doing anything to bring jobs back to the US? Not sure whether thatâ(TM)s considered winning?
The jobs are never coming back (Score:2)
Ever. Trump's commerce Secretary admitted that on Fox news. If the factories do come back, which is unlikely but if they do they will be almost entirely automated. You will have one security guard maybe and two or three guys tops running the whole show for a single factory that produces basically everything.
It's also funny because when surveyed nobody really wants to work in a factory but everybody is desperate to get those factory jobs back. Like how nobody wants to go pick strawberries but we will be
Re: (Score:2)
> Like how nobody wants to go pick strawberries but we will be damned if we bring in migrants to do it.
There is a visa specifically for this (H-2A).
We were starting a cold war with China (Score:2)
So everybody was already looking to get out and move to India or Vietnam or maybe even Mexico.
This has nothing to do with the tariffs this has to do with the Cold war we're gearing up for because Russia has proven itself to be anything but a credible threat and the war on terror has run out of steam since it turns out it's relatively easy to stop people from flying airplanes in the buildings by just locking the cockpit.
Remember folks we have always been at war with Eurasia.
See the pattern? (Score:2)
> "We accelerated the shift of factories out from China into Southeast Asia, into Mexico to a certain extent in the US to mitigate the impact of the change,"
Notice what their last choice is. Also note that the only thing they will stop making in China is stuff that they would sell in the U.S.
What do you think the odds are that the entire HP senior management votes straight Republican.
Re: See the pattern? (Score:2)
"HP has removed the US as a distribution hub for products sold in Canada or to Latin America. Doing so means HP doesn't have to pay tariffs." Oh look, warehouse and logistics workers who are no longer required. Sophos did the same and I'm sure there are others. Making yourself less attractive by being a bully isn't the genius move it seems to be on the surface... else some of the previous administrations would have done it.
Re: (Score:2)
They're going to make the little velcro strap for laptop chargers in this country.