Fitbit to maneuver manufacturing out of China to keep away from tariffs
A Fitbit show is seen at a Goal retailer in Los Angeles.
Shares of Fitbit briefly rose 2% after the corporate introduced Wednesday it plans to shift its manufacturing operations exterior of China to keep away from tariffs. The inventory was down barely late Wednesday morning.
Starting in 2020, all of Fitbit’s health trackers and smartwatches is not going to be of Chinese language origin, that means they will not be topic to Part 301 tariffs, the corporate mentioned.
“In 2018, in response to the continued menace of tariffs, we started exploring potential alternate options to China,” Ron Kisling, Fitbit’s CFO, mentioned in an announcement. “On account of these explorations, we have now made modifications to our provide chain and manufacturing operations and have extra modifications underway.”
Fitbit in June joined plenty of U.S. corporations, together with Apple, in submitting a letter of opposition to the Trump administration’s plan to slap extra tariffs on Chinese language items, in keeping with Reuters. Within the letter, Fitbit mentioned the tariffs would find yourself benefiting Chinese language system makers who do enterprise within the U.S.
Earlier this yr, President Donald Trump introduced a brand new wave of tariffs on about $550 billion in Chinese language items, marking an escalation within the U.S.-China commerce struggle. Commerce tensions have been happening for greater than a yr, with many know-how corporations being hit by the dispute.