Newell Brands is looking reduce its tariff exposure related to Chinese imports by moving some production of its countertop kitchen appliances out of China, according to a Reuters report this week citing Newell CEO Chris Peterson.
Newell also relocated Chinese South Korean production for its writing business to its expandable factory in Maryville, TN, according to the Reuters report.
In the Reuters report, Peterson cites general uncertainty about tariffs as the 2024 presidential election nears. According to the report, he said Newell doesn’t “advocate for one political ideology,” and the company is not moving manufacturing in response to a campaign pledge by Republican presidential candidate Donald Trump to increase tariffs further on Chinese imports if Trump regains the White House. Peterson also noted, according to Reuters, Democratic leaders have discussed continuing and expanding previous Trump-administration tariffs on Chinese goods.
“There’s a lot of uncertainty,” Peterson said, according to the Reuters report. “We just want to reduce our exposure regardless of the outcome.”
According to the Reuters report, Peterson said Newell is not exiting China altogether as a small appliance production resource. The report cites Vietnam, Thailand, and Indonesia as potential sources for Newell small appliance manufacturing. Newell produces and markets kitchen electrics under brands such as Mr. Coffee, Crock-Pot, Oster, Sunbeam and FoodSaver.
The Reuters report notes Peterson told investors in a July conference call Newell expects less than 10% of the company’s U.S. business to be sourced from China by the end of 2025, compared to about 15% currently and about 35% five years ago.
