Fitbit to shift manufacturing out of China

Fitbit announced it would shift its manufacturing operations outside of China to avoid tariffs. All of Fitbit’s fitness trackers and smartwatches will not be subject to Section 301 tariffs as of 2020.

Shares of Fitbit briefly rose 2% after the company announced Wednesday it plans to shift its manufacturing operations outside of China to avoid tariffs. The stock was down slightly late Wednesday morning.Beginning in 2020, all of Fitbit’s fitness trackers and smartwatches will not be of Chinese origin, meaning they won’t be subject to Section 301 tariffs, the company said.

Fitbit in June joined a number of U.S. companies, including Apple, in filing a letter of opposition to the Trump administration’s plan to slap additional tariffs on Chinese goods, according to Reuters. In the letter, Fitbit said the tariffs would end up benefiting Chinese device makers who do business in the U.S.

This action of Fitbit comes with the announcement of President Donald Trump on the new wave of tariffs on about $550 billion in Chinese goods, marking an escalation in the U.S.-China trade war. Trade tensions have been going on for more than a year, with many technology companies being hit by the dispute.