Tech Ramps Up Criticism of Trump China Tariff Increase
President Donald Trump’s administration making good at 12:01 a.m. Friday on his threat to hike the 10 percent tariffs on $200 billion in Chinese goods to 25 percent drew tech concern. “Raising tariff rates or imposing new tariffs on American…
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families is not a winning negotiating tactic" with the Chinese, said CTA Friday. The tariff hike will raise the “significant toll” the trade war already has taken on U.S. businesses, workers, and consumers,” said Naomi Wilson, Information Technology Industry Council senior policy director-Asia. GoPro meanwhile remains "on track" to begin "ramping" up" U.S.-bound" action-camera production this quarter in Guadalajara, Mexico, as a proactive hedge against possible future tariffs on Chinese goods, said Chief Financial Officer Brian McGee on a Q1 call Thursday evening. GoPro has no current exposure to the three rounds of tariffs imposed since July but wanted protection anyway against new duties, he said. Guadalajara's production ramp will "support" U.S. sales beginning in Q3, said McGee. "We expect most of our U.S.-bound cameras will be in production in Mexico in the second half of 2019." GoPro's decision to shift production of most cameras destined for U.S. import from China to Mexico "supports our goal to insulate us against possible tariffs, as well as recognize some cost-saving and efficiencies," he said. The company says it's keeping production of non-U.S. cameras in China because it's an important strategic hub and the Chinese consumer market loves the product.