- Malaysia
- India
- Thailand
- Indonesia
- Vietnam
US manufacturers are moving production from China to other countries, with trade tensions between the two largest economies in the world entering its third year.
Manufacturers of Crocs shoes, Yti beer coolers, vacuum cleaners Roomba and GoPro cameras are now producing in other countries to avoid US tariffs up to 30% on imports from China amounting to $250 billion a year. From its devices outside of China for the same reason.
Furniture manufacturer Lavasak produces about 60% of its products in China, down from 75% earlier this year. "We are moving production to Vietnam very aggressively," said Sean Nelson, CEO of Stanford, Connecticut. Nelson plans to eliminate production completely in China by the end of 2021.
Company executives moving operations outside of China say they anticipate a permanent transition, due to the time and costs invested in setting up new facilities and changing transportation and transfer arrangements. Companies say this trend has accelerated since tariffs on many Chinese products increased from 10% to 25% in May.
"When you pass, don't come back," Nelson said.
Yeti Holdings said it plans to move most of its soft coolers (small coolers) from China by the end of this year. IRobot is setting up a new production line for the Roomba vacuum cleaners in Malaysia this year. Crooks said it expects only 10% of its U.S.-made produce will be produced in China next year, up from 30% last month.
"Imports from China declined"
US imports from China fell 12% in the year to May, according to the US Population Administration - the sharpest decline since the financial crisis a decade ago.
The main beneficiaries of this decline are other Asian countries where low production costs, such as the countries listed, many record sharp increases in exports, although some accusations are due to increased product movement from Chinese production that passes through these countries without major changes to circumvent tariffs.
