Google is moving its production of US-bound Nest devices and server hardware out of China in order to avoid tariffs as high as 25 percent, reports Bloomberg. Production of motherboards heading to Google’s US data centers have moved to Taiwan, while Nest devices heading Stateside are now being produced in Taiwan and Malaysia. The moves are a response to increasing tensions created by the US-China trade war.
The shift in geographies are meant to shore up Google’s bottom line. Tariffs have to either be absorbed directly by the companies or passed along to consumers in the form of higher prices. As such, many companies that sell to the USA are now considering moving at least some of their manufacturing out of China, disrupting a complex…
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Author: Thomas Ricker