(Photo by Jakub Porzycki/NurPhoto via Getty Images)
To avoid Trump's tariffs, HP says it's close to shifting most US-bound production out of China, but consumers might still encounter price hikes.
HP originally expected the migration to be completed by the end of October. But in an earnings call on Wednesday, CEO Enrique Lores said the timeline has moved up to next month.
"By the end of June, we now expect nearly all of our products sold in North America will be built outside of China, significantly accelerating our previous plan," he said.
HP has expanded PC and printer production in countries including Vietnam, Thailand, India, Mexico, and even the US, Lores said. But, in some bad news, HP is implementing "price increases to help offset cost pressure."
Recommended by Our Editors
"In a very targeted way, we have also taken price actions across the full portfolio, both in personal systems and in print, to reflect the costs that we have seen," he added. "We have seen the market and the rest of the competitors taking similar actions across the two industries. So we see this as an industry change that will be put in place at the end of Q2 and now in Q3.”
The company still expects the PC market to grow for the remainder of 2025, “but softer than originally planned, driven by increased macro uncertainty,” Lores said.
Other PC vendors have also been moving manufacturing away from China, but they have still needed to roll out price increases in the short term to cover the tariffs.
Despite the manufacturing shift, it’s possible the White House may remove the bulk of tariffs. On Wednesday, a federal trade court ruled that Trump’s most sweeping tariffs, including a 30% rate on Chinese imports, exceeded presidential authority and are therefore illegal. The court ordered the White House to remove the tariffs within 10 days. So far, the Trump administration has yet to respond to the ruling.