Leading action camera-maker, GoPro, announced on Monday that it will move production of U.S. bound cameras out of China, in order to avoid getting caught up in the tariff war. However, the company added that international-bound camera production will remain in China with focus on the non-U.S. markets.
In an official statement released on Monday, GoPro’s Chief Financial Officer Brian McGee said that "today’s geopolitical business environment requires agility, and we’re proactively addressing tariff concerns by moving most of our U.S.-bound camera production out of China. We believe this diversified approach to production can benefit our business regardless of tariff implications."
He also confirmed that movement will be complete in 2019 and if necessary, will be completed within the first half of 2019.
The California-based company has not yet announced just where it will move its America-bound production, but it seems highly unlikely these new jobs will move stateside due to prohibitively expensive labor costs. Another option such as Vietnam might make more sense, as it maintains the cost advantage.
Once a must-have for surfers, skydivers and other action junkies, GoPros’ trademark action-cameras have seen substantial drop in demand owing to rising competition. As it battles waning demand for its products, any increase in the product prices could prove pivotal in the company’s struggle to maintain profitability.