Some producers are turning to third countries due to the rise of the commercial struggle between the United States and China. He recently brought additional customs duties to products from Donald Trump, Mexico, Canada and China. Since the US is one of the biggest markets, this means a serious blow to companies.Products from Mexico and Canada are now subject to 25 %tax. While a 10 %tariff was applied for imports from China, this rate rose to 20 %due to Beijing’s retaliation steps. In the face of this situation, many local companies are trying to move their production to countries that are not affected by these taxes.
US-China competition is forcing technology companies
Lenovo is among these companies. Lenovo, an important player in the computer, server and hardware market, carries production facilities to India to avoid negative impact on the US customs duties. In the first place, PC and laptop production will be transported, and then other production units will follow this process.
Lenovo is just one of the major companies preparing to move from China. At the beginning of February, Asrock announced that it will carry its production facilities to Vietnam and Taiwan. Dell has announced its plans to diversify business processes and aims to reduce production dependence in China.
