Newell Brands Shifts Production: Navigating Tariff Uncertainty

Newell Brands, the maker of Sharpie pens, is moving some kitchen appliance production out of China and has relocated its writing business to Tennessee amid tariff uncertainty. The company is automating U.S. manufacturing to compensate for higher wages and aims to reduce dependence on Chinese manufacturing.

Newell Brands, known for Sharpie pens, is shifting some of its kitchen appliance production out of China and has already moved its writing business manufacturing to Tennessee. This comes as the company navigates tariff uncertainties ahead of the U.S. presidential election, according to CEO Chris Peterson in an interview with Reuters.

Peterson clarified that the supply-chain changes are not a reaction to Donald Trump's campaign promises of steep tariffs on Chinese-made goods, although he acknowledged similar policies from Democrats. "We just want to reduce our exposure regardless of the outcome," he stated, noting the difficulty of real-time supply chain adjustments.

Newell is automating U.S. manufacturing to offset higher wages and improve efficiency. "If you have a plant that is automated enough, the economics work," Peterson said. Despite ongoing challenges with volatile freight costs and disrupted supply chains, the company is committed to decreasing its dependence on Chinese manufacturing.

(With inputs from agencies.)