HP Prepares for Potential Tariffs with Increased Inventory
HP Inc. (HPQ) is stockpiling computers in anticipation of potential tariffs from President Trump, joining other consumer-focused companies taking similar precautions. Speaking at the World Economic Forum in Davos, Switzerland, HP CEO Enrique Lores confirmed the company has boosted its inventory of finished products to mitigate initial impacts if tariffs are implemented.
HP faces significant exposure to tariff risks, as it relies on China for both sales and key component sourcing. If tariffs increase, material costs could rise, forcing the company to adjust consumer prices. The Consumer Technology Association estimates proposed tariffs could increase laptop and tablet prices by as much as 46%, with smartphones seeing a potential 26% hike.
President Trump has floated tariffs ranging from 10% to 20% on most imports, with up to 60% on Chinese goods. He recently suggested 25% tariffs on the European Union, though he did not confirm additional tariffs on China.
HP and other consumer electronics companies are closely monitoring these developments. A board member of a large U.S. electronics retailer revealed that half of their time is currently spent analyzing tariff scenarios, as many products—including headphones and speakers—depend on Chinese sourcing.
As 2025 unfolds, HP’s performance will hinge on navigating these challenges, alongside demand for artificial intelligence PCs and broader trade policies.
HP Inc. (HPQ) is stockpiling computers in anticipation of potential tariffs from President Trump, joining other consumer-focused companies taking similar precautions. Speaking at the World Economic Forum in Davos, Switzerland, HP CEO Enrique Lores confirmed the company has boosted its inventory of finished products to mitigate initial impacts if tariffs are implemented.
HP faces significant exposure to tariff risks, as it relies on China for both sales and key component sourcing. If tariffs increase, material costs could rise, forcing the company to adjust consumer prices. The Consumer Technology Association estimates proposed tariffs could increase laptop and tablet prices by as much as 46%, with smartphones seeing a potential 26% hike.
President Trump has floated tariffs ranging from 10% to 20% on most imports, with up to 60% on Chinese goods. He recently suggested 25% tariffs on the European Union, though he did not confirm additional tariffs on China.
HP and other consumer electronics companies are closely monitoring these developments. A board member of a large U.S. electronics retailer revealed that half of their time is currently spent analyzing tariff scenarios, as many products—including headphones and speakers—depend on Chinese sourcing.
As 2025 unfolds, HP’s performance will hinge on navigating these challenges, alongside demand for artificial intelligence PCs and broader trade policies.