- HP says he is on his way to stop work in China
- The computing giant will stop production in China to avoid Trump tariffs
- HP also reveals price increases to deal with higher rates than expected
HP INC has revealed that it is almost done with its departure from China, since Trump administration rates continue to affect even larger companies.
Speaking about his last earning calls of the second quarter of 2025, the president and CEO of the company, Enrique Lores, said that he has “accelerated” his movement to have zero products that are directed to the United States, made in China.
HP INC had said that the last quarter would make such a movement, and now it seems close to guaranteeing that it fully complies with the growing punitive tariffs.
HP coming out of China
“A quarter ago, we shared that our goal was to have less than ten percent of the products in North America sent from China in September,” Lores said in the call.
“We have accelerated that and we share that now almost no product will come from China sold in the US. For June. It is a very significant acceleration of the plan we have.”
“We accelerate the change of factories from China to Southeast Asia, to Mexico to some extent in the United States to mitigate the impact of change,” he added.
Lores also revealed that to avoid more rates, HP will no longer use the US as a distribution center for products sold in Canada or Latin America.
The company revealed net income of $ 13.2 billion for the second quarter of 2025, an increase of 3.3% year after year, however, EPS (earnings per share) fell from $ 061 to $ 042, below the company’s prospects.
Lores said that the company was in “a very different economic situation from where we were a few months ago in terms of confidence of consumers and commercials,” forcing him to take what he called “price actions”, effectively increases on the PC and the print hardware.
“In the light of the increase in macroeconomic uncertainty, we have adjusted our perspective to reflect the moderate demand and the net impact of trade related costs,” said Karen Parkhill, CFO, HP INC, adding that the company was “to execute specific mitigation strategies and assuming that current conditions continue, we hope to completely compensate for these costs in the fourth place and the fourth.”
He pointed out that HP had worked aggressively to respond to changes in the regulatory commercial environment “however,” the rates increases announced in April were higher than expected. “
“The total benefit of these mitigating actions can take a few months of waiting time depending on the scope,” Parkhill added.
