GoPro is moving camera production out of China, citing tariff worries

Key Points
  • GoPro says it will move production of U.S.-bound cameras out of China to avoid being caught up in tariffs.
  • It doesn't say where those cameras will be manufactured.
  • The company says production will remain in China for cameras bound for non-U.S. markets
Nick Woodman, founder and chief executive officer of GoPro Inc., speaks during an event in San Francisco, California, U.S., on Thursday, Sept. 28, 2017.
David Paul Morris | Bloomberg | Getty Images

GoPro announced Monday it is pulling camera production for the U.S. market out of China by the summer to avoid being caught up in the Washington-Beijing trade war.

Production will continue in China for non-U.S.-bound cameras, the company said. GoPro was down 1 percent in midday trading.

"Today's geopolitical business environment requires agility, and we're proactively addressing tariff concerns by moving most of our US-bound camera production out of China," said Brian McGee, executive vice president and CFO of GoPro. "We believe this diversified approach to production can benefit our business regardless of tariff implications."

The trade war between the U.S. and China has been escalating in recent months until a 90-day pause the White House said both countries' leaders agreed to on Dec. 1.

GoPro said it owns the production equipment it uses to manufacture cameras, and relies on its manufacturing partner in China only for its facilities. Because of this, McGee said in a statement, "we expect to make this move at a relatively low cost."

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Dow futures point to a sharp decline at the open as sell-off looks set to continue