- HP says it’s about to stop work in china
- Computing Giant will stop production in China to avoid Trump -Teaching Rates
- HP also reveals price increases to deal with higher than expected tariffs
HP Inc has revealed that it is almost done with its exit from China, as the Trump administration bariffs continue to affect even the largest companies.
When he talked about his latest Q2 2025 earnings call, the company’s president and CEO Enrique Lores said it has “speeded up” its step to having zero products on the way to the United States made in China.
HP Inc had said it would make such a step in the last quarter, and is now looking close to ensuring that it fully complies with the rising punishing tariffs.
HP leaves China
“A quarter ago, we shared that our goal was to have less than ten percent of the products in North America that were sent from China in September,” Lores said on the call.
“We have accelerated it, and we share that there are now almost no products from China sold in the US in June. It is a very significant acceleration of the plan we have.”
“We accelerated the change of factories from China to Southeast Asia, to Mexico to some extent in the United States to reduce the effect of the change,” he added.
Lores also revealed that HP to avoid additional tariffs will no longer use the United States as a distribution hub for products sold in Canada or to Latin America.
The company revealed $ 13.2 billion net income for the 2nd quarter of 2025, an increase of 3.3% year by year, but EPS (earnings per share) fell from $ 061 to $ 042 – under the company’s prospect.
Lores noted that the company was in, “a very different financial situation, from where we were a few months ago in terms of both consumer and business,” forced it to take what he called “price actions”, rising effectively across PC and printing hardware.
“In light of the increased macroeconomic uncertainty, we have adjusted our prospects of reflecting moderated demand, and the net effect of trade -related costs,” said Karen Parkhill, CFO, HP Inc, adding the company, “to perform targeted remedy strategies, and assuming that the current conditions are back, we expect to fully against against the contrary with Q4.”
She noted that HP had, “worked aggressively to respond to changes in the regulatory trade environment”, “Customs increases announced in April were higher than expected.”
“The full advantage of these mitigating actions can take a few months of leading time depending on the scope,” Parkhill added.
