[News] Microsoft, HP, Dell Reportedly Stockpile China Parts Ahead of Expected Trump Tariff Hikes

According to a report from MoneyDJ, citing Nikkei, Microsoft, HP, and Dell are reportedly stockpiling electronic components in anticipation of increased tariffs on Chinese goods, expected to take effect once Donald Trump assumes office in January.

The report states that Microsoft has instructed its suppliers to prepare additional components for its cloud server infrastructure in November and December to avoid the upcoming tariffs. The company has also urged suppliers to manufacture components outside of China and to expedite the relocation of Xbox assembly lines out of the country. Additionally, Microsoft has requested suppliers to produce Surface laptops outside of China by the end of next year.

Similarly, HP and Dell have asked their suppliers to ramp up component production during November and December, as the report mentions. As two of the world’s largest PC manufacturers, both companies are reviewing their 2025 procurement plans to accelerate the reduction of China-based production for laptops and desktops.

The report also mentions that an electronic components supplier for HP, Apple, and Microsoft revealed that several U.S. clients have asked about expediting the relocation of production lines out of China in order to avoid potential tariff hikes.

The increased production of Chinese-made components in the coming months will primarily be allocated to countries and regions unaffected by U.S. tariffs, aiming to rapidly boost the capacity in those areas, as the report highlights.

On the 25th, Trump announced via his social media platform, Truth Social, that he would impose an additional 10% tariff on Chinese goods on top of existing tariffs. Furthermore, the report mentions that he also declared a 25% tariff on all products from Mexico and Canada, citing drug trafficking and illegal immigration as the primary reasons for these measures.

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