According to sources cited by Bloomberg on Friday, December 20, Home Furnishing giant “At Home” is reportedly shifting some of its manufacturing and product supply lines out of China in an effort to minimize the potential impact of additional import tariffs imposed by the United States on Beijing.
The management of “At Home” allegedly informed investors during the third-quarter earnings conference call that the company is increasing shipments from Vietnam, India, and Turkey while expanding procurement from other countries, including the United States.
Representatives from “At Home” and their private equity owner Hellman & Friedman declined to comment on the matter.
Due to concerns that inflation is discouraging consumers from purchasing certain home goods, “At Home” has reduced capital expenditures.
Sources revealed that the company’s third-quarter capital expenditures decreased from $15.1 million in the same period last year to $4 million.
They noted that net sales decreased by 2.5% year-on-year to $414.7 million. Meanwhile, comparable-store sales dropped by 2.5%, an improvement from the 10.9% decline seen last year. The company’s e-commerce business saw growth this quarter, increasing by nearly 30% compared to the same period last year.
President-elect Trump (then-President Trump) promised to levy tariffs of 60% or higher on all products manufactured in China during his second term to protect American industry and employment.
It is believed that Trump 2.0’s trade war will have a greater impact on Chinese exports. After enduring strict COVID-19 control measures for over three years, China’s real estate market collapse and weak consumer confidence have left exports as one of China’s few remaining economic engines.