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.
Google has already shifted much of its production of U.S.-bound motherboards to Taiwan, averting a 25% tariff, asking not to be identified discussing internal matters. While U.S. officials have pinpointed Chinese-made motherboards as a security risk, Google didn’t bring that up during discussions with its suppliers, they said. Tariffs have also pushed American-bound production of its Nest devices to Taiwan and Malaysia.
The migration is taking place as companies both foreign and domestic seek to pivot their production away from China amid U.S. President Donald Trump’s efforts to reset the perimeters for global trade and manufacturing.
Google’s production shift is part of an increasing trend. GoPro is moving its US-bound production to Mexico. Yesterday, Foxconn said it was prepared to move the production of US-bound iPhones outside of China before new tariffs as high as 25 percent kick in at the end of the month.
