HP, Dell and Microsoft have ordered their Chinese production factories to run at full speed next month. If Trump takes the oath of office, the party is over.

For PC manufacturers, it’s a race against time. According to Nikei Asia sources, HP, Dell and Microsoft have ordered their Chinese manufacturers to significantly increase production in November and December. The manufacturers want to have as many components as possible completed by January 20th, the day Trump is sworn in as president.

Import duties

Trump doesn’t have much interest in China and wants to impose high import tariffs on anything and everything that isn’t quintessentially American. Starting next year, all types of goods imported into the United States from China will be subject to a 10 percent tax. The Trump administration is thus making a U-turn compared to the Biden administration, which only tried to attract production to American territory with financial incentives.

The tax won’t go into effect until Trump is sworn in, but he won’t wait long to introduce this measure. This is one of the few things about the new policy that is already clear to the tech industry.

Promised land

In the long term, PC manufacturers will be forced to move their production out of China as much as possible. Increasing tensions between the US and China, which will continue to escalate under Trump, mean that China is no longer the promised land it once was. Dell and HP have already moved much of their production to Vietnam and Thailand. Microsoft is also looking for a solution for its Surface laptops. A process that will last until the end of 2025.

Manufacturers need to think carefully about where they locate their factories. Trump also wants to impose import duties on the neighboring countries of Canada and Mexico. Double bad news for HP, which produces its business notebooks for the North American market in Mexico.