Australian renowned kitchen and coffee appliance manufacturer Breville Group has been gradually moving its production base for the US market out of China.
The global company, known for inventing the sandwich press, revealed in its latest financial report that its Breville and Sage brands’ 120-volt products sold in North America are currently manufactured in Southeast Asia and Mexico. Meanwhile, products operating at 240 volts sold in Europe, the Middle East, Africa, Asia-Pacific, and South America are still produced in China.
According to the 2025 fiscal year financial report released by Breville on August 20th, the company stated, “Currently, approximately 65% of the gross profit from the US market comes from products manufactured outside of China (Europe, Southeast Asia, and Mexico), which is an increase from 15% at the beginning of the diversification plan.”
It is projected that by the first half of 2026, approximately 80% of products contributing to the gross profit in the US market will be manufactured outside of China.
The latest financial report indicates that the company’s net profit after tax for the fiscal year ending June 30, 2025, was $1.359 billion, marking a 14.6% increase from the previous fiscal year, while revenue grew by 10.9% to nearly $1.7 billion.
The 90-day trade truce between the US and China is set to expire on November 10, 2025. Currently, the Trump administration maintains tariffs on Chinese goods at 30%.
Additionally, Section 301 tariffs apply to household appliances, including coffee makers and blenders, with rates ranging from 7.5% to 25%, and further increases are under review.
President Trump has also expressed concern about the issue of “origin washing.” He warned of an additional 40% tariff on products “transshipped” to other countries to conceal their true origin.
The company stated that throughout the year, markets in Europe, the Middle East, Africa, and the Asia-Pacific region have continued on a healthy growth trajectory, while the Americas have experienced uncertainty due to global tariffs imposed by the US government.
Faced with this reality, the company needs to swiftly adapt its strategies for the Americas while maintaining steady progress on its long-term strategic plans.
For the 2025 fiscal year, the company saw an 11.8% increase in revenue in the Americas region.
Breville Group announced a “strategic realignment” of its production bases in response to the new US tariffs on April 3.
In a statement, the company mentioned, “This plan may be adjusted based on actual circumstances. No matter where the final location is chosen, the group will benefit from the geographical diversification of the manufacturing base,” and stated that the company would continue to make strategic adjustments to mitigate any short-term impacts of potential new tariffs.
At that time, the company reported that 90% of its products were manufactured in China, with 45% of these products sold in the US. They were exploring countries like Mexico, Indonesia, and Cambodia as “preliminary target locations” to diversify their production bases.