Sharpie maker Newell Brands working to reduce China dependency amid tariff pressure

Newell Brands

07/02/2025 16:20

Feb 7 (Reuters) - Newell Brands'   NWL.O  CEO said on
Friday it is aiming to reduce its reliance on Chinese suppliers
to minimize the impact of U.S. import tariffs, following its
unexpected quarterly loss forecast.
    The Sharpie maker, which partly manufactures and sources
products from China, said it plans to bring down the cost of
finished goods imported to the U.S. to less than 10% from around
15% of the company's total cost of goods sold by the end of the
year.
    Earlier this week, U.S. president Donald Trump imposed 
sweeping 10% tariffs on all Chinese imports, sparking a new
trade war between the world's two largest economies.
    "The company has been shifting production out of China and
into alternate geographies through both existing and new
suppliers," CEO Chris Peterson said on a post-earnings call on
Friday.
    Shares of the Graco children's product maker slumped 27% on
Friday after it forecast a first-quarter loss of between 6 cents
and 9 cents per share, compared with analysts' estimates of a
profit of 3 cents, according to data compiled by LSEG.
    It also forecast annual net sales to decline in the range of
2% to 4% versus analysts' estimates of a 0.7% decline. The
company added these forecasts do not factor in the impact of
tariffs.
    Last year, ahead of U.S. elections, Peterson told Reuters
the company was moving some production of kitchen appliances out
of China and has relocated manufacturing for its writing
business to Tennessee as it faces "uncertainty" on tariffs.

 (Reporting by Anuja Bharat Mistry in Bengaluru; Editing by
Vijay Kishore)
 ((AnujaBharat.Mistry@thomsonreuters.com;))