Tariff Quote Watch: GoPro on Track to Shutter China Capacity, Open in Mexico — Panjiva
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Tariff Quote Watch: GoPro on Track to Shutter China Capacity, Open in Mexico

China 1794 Info Tech - Tech Hardware 387 Mexico 516 Tariff Quote Watch 100 Tariffs 1206 U.S. 3365

Sports camera maker GoPro is on track to shift much of its production from China to Mexico by 2H 2019, CFO Brian McGee has stated, following a “decision to move most of our U.S.-bound production to Mexico supports our goal to insulate us against possible tariffs as well as recognize some cost savings and efficiencies“, according to S&P Global Market Intelligence.

The move has become increasingly important given the decision by the Trump administration to increase tariffs on a wide-range of Chinese exports to 25% from 10%, as outlined in Panjiva’s research of May 9, as well as threaten to impose duties on all other imports from China.

U.S. imports of all cameras from China, which accounted for 65.3% of the total 84.1 million shipped in 2018 Panjiva data shows, fell 1.7% year over year in March. That reversed a 29.7% surge in 4Q and reflects the fact that most cameras were only subject to 10% duties, which will now rise to 25%. There’s already evidence of switching with imports from Mexico having surged 57.7% year over year in 1Q 2019 after a 27.3% improvement in 4Q.

MEXICAN CAMERA PRODUCTION GROWTH NOT A NEW PHENOMENON

Chart segments U.S. imports of cameras from selected origins.   Source: Panjiva

GoPro’s seaborne imports of cameras – which come wholly from China – lagged the average with U.S. seaborne shipments having fallen by 6.1% year over year in 1Q while also being unchanged in April. Total imports of GoPro merchandise only fell 2.6% year over year in 1Q though as a result of a surge in shipments of accessories, which has continued into April.

BUYERS BAGGING MORE ACCESSORIES, FEWER CAMERAS

Chart segments U.S. seaborne imports associated with GoPro by product on a monthly and three-month average basis.  Source: Panjiva

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