Google is now moving Nest production out of China as well as the motherboards for Google’s US data center. This is only the beginning.
US-bound Nest devices and server hardware is on the move out of China due to tariff spikes as high as 25 percent. The production of motherboards have moved to Taiwan, while Nest devices are now being produced in Taiwan and Malaysia. The move is a direct response to the increasing tension created by the US-China trade war.
This will be a huge concern going forward for consumers as these tariffs have to either be absorbed directly by the companies or passed along to consumers in the form of higher prices. Now most of the companies that sell to the USA are now considering moving at least some of their manufacturing out of China.
Google’s production shift is nothing new and part of an increasing trend. GoPro is now moving its US-bound production to Mexico and Foxconn already said it was prepared to move the production of iPhones outside of China before new tariffs kick in at the end of the month.