Antonio Neri, the Chief Executive of Hewlett Packard Enterprise Co (NYSE:HPE) is keeping his hopes high that trade tensions with China will be ending soon. If that doesn’t happen, he has a second plan. He says they will have to ramp up manufacturing operations at the Wisconsin facility.
Strategy of evading tariffs
He recently attended an event in San Francisco. He addressed a number of journalists regarding the company and its plans. He outlined that the company’s products were not affected by last week’s tariffs in a direct way. The company’s has some of its equipment manufactured in China. There are chances the tariffs in the country might end up affecting their equipment.
The official says that if that happens they would be compelled to modify their production plans. Reports indicate that the company produces an average of three services over a timeframe of 10 seconds.
He opined, “We have the ability to manufacture more products in the United States. That’s not the issue. The issue is how to manage our supply chain to best serve our customers.”
It was on Monday that the company gave updates to shareholders. It disclosed that the shares have moved up by 2%.That was in Midday trading which left the figure at $15.28.
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Turn of events
Both China and the United States are apparently taking on each other heads on. That came out clearly from what they did on Friday. Reports indicate they hit each other with a $34 billion worth of duties on imports. Aerospace, machinery and a number of other industrial businesses are said to have been hit with impact.
Temperatures don’t seem to be going down anytime soon, more so considering a statement the U.S president made recently. Donald Trump issued a threat about additional tariffs. He outlined the tariffs would affect about $500 billion worth of goods from China.
Since its establishment, HPE has been working hard to deliver top quality goods and services. Governments and businesses around the globe rely on it for supply of networking gear, servers and other equipment. It is worth noting that these are Governments and businesses keen on hosting their own data centers.