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SharkNinja to pull China-based manufacturing to avoid tariffs

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Dive Brief:

Dive Insight:

SharkNinja’s ongoing manufacturing shift from China to other countries in Southeast Asia aims to mitigate the impact of U.S. tariffs on imports from the country, which have led to higher costs and supply chain uncertainties.

The company’s manufacturing pivot comes as other brand manufacturers that maintain significant China-based capacity reevaluate their supply chains, including Clorox and Colgate-Palmolive.

SharkNinja began its migration out of China in 2018 following the previous Trump administration’s imposition of tariffs on imports, Barrocas told investors. The company has shifted manufacturing operations to countries such as Cambodia, Indonesia, Malaysia, Thailand and Vietnam.

"Due to our proactive supplier expansion, we expect to have moved roughly 90% of our U.S. volume outside of China by the end of the second quarter and nearly all by the end of 2025," Barrocas told investors.

To further combat higher levies, SharkNinja has reduced costs by negotiating concessions from Tier 1 and Tier 2 suppliers, he added. The company has also lowered product expenses through adjustments to configurations, features, packaging and finishes, and has increased profitability by replacing low-margin products with higher-margin versions.

Additionally, SharkNinja has increased pricing and will continue to do so as "we strategically identify areas where we can drive increased average sell price for our products, not just in the United States, but globally," Barrocas said.

"We're already selectively increasing prices for several of our key products, and we'll continue to look for additional opportunities," he said.

Despite SharkNinja's tariff-defense moves, the Trump administration's tariffs have cost the company “hundreds of millions of dollars,” according to Barrocas.

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