GoPro is moving production out of China due to high tariffs

The trade war between China and the United States has resulted in huge tariffs. This has led U.S. companies like GoPro to move their production out of China.

GoPro Monday announced it would be moving its camera production out of China by summer 2019. They will be moving production to a country that will cost less to produce in. This move is only for U.S.-bound cameras. GoPro cameras made for other countries will continue to be made in China.

Brian McGee, executive vice president and CFO of GoPro, has said it would be “prudent” for GoPro to think about moving its manufacturing to a lower cost country.

“Today’s geopolitical business environment requires agility, and we’re proactively addressing tariff concerns by moving most of our US-bound camera production out of China,” said McGee. “We believe this diversified approach to production can benefit our business regardless of tariff implications.”

Where is GoPro going to avoid the high tariffs?

GoPro hasn’t said where it will be moving the production of its U.S.-bound cameras. It’s possible that GoPro is considering a few different Asian countries. Due to the trade war, companies have considered moving production to Vietnam, Thailand and Taiwan.

Regardless, the move shouldn’t cost GoPro much. McGee said that even though GoPro’s manufacturing partner offers facilities, GoPro owns its production equipment. McGee “expect[s] to make this move at a relatively low cost.”

The trade war between the U.S. and China has been intensifying for the past few months. Though the U.S. and China have reached an agreement for a 90-day pause, if the war continues, more companies producing in China will likely follow GoPro in moving production elsewhere.

Sean Berry
Sean Berry
Sean Berry is Videomaker's managing editor.

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