Logitech International (NASDAQ:LOGI) is making strong progress in shifting manufacturing away from China to reduce exposure to U.S. tariffs, CEO Hanneke Faber stated Wednesday.
The company aims to bring the share of products destined for the U.S. that are made in China down to 10% by year-end, having already lowered it from 40% to just over 30%.
“We are well on track,” Faber told Reuters after Logitech reported its first-quarter results.
Logitech is expanding production across several countries where it partners with contract manufacturers, including Malaysia, Mexico, Taiwan, Thailand, and Vietnam.
“The manufacturing diversification that we’ve been doing out in Asia and in Mexico is exemplary,” Faber said. “We’re not seeing any material cost increases from moving stuff around and that’s quite a feat.”
To help offset the impact of tariffs, Logitech has increased prices in the U.S. by 10% but does not currently plan further hikes.
Faber added the company intends to keep investing in new products while managing costs carefully amid ongoing economic uncertainties.
“The tariffs are not a small thing, but we’ve been super agile, changing plans at a moment’s notice,” she said. “That’s what we’ll continue to do.”
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.