Our previous supply chain analysis revealed a list of major US brands that remained heavily exposed to China. The ongoing trade war has lit a fire under U.S. management teams, accelerating efforts to shift production—either through friend-shoring or reshoring—as it appears likely that some level of tariffs on Chinese goods will remain through the second half of the year.
The latest U.S. company highlighting its China exposure is drinkware brand YETI, which disclosed at an investor conference this week that shifting production out of China has become a top priority.
Goldman analysts Brooke Roach, Evan Dorschner, and others wrote in a note on Thursday about the top takeaways from their visit to YETI's headquarters in Austin, Texas, for an investor meeting.
Roach said their conversations with management revolved around :
U.S. growth;
Drinkware;
Product innovation and portfolio extension;
Supply chain transformation and tariffs;
International expansion
On US growth, the drinkware business, and the innovation pipeline, the analyst summarized their conversations with management:
Here's where analysts and YETI management discussed tariffs, sourcing, and international strategy.
The key takeaway: tariff pressures have accelerated YETI's supply chain shift out of China, with production increasingly moving to Thailand, Malaysia, and other Southeast Asian countries equipped with full-scale manufacturing capabilities.
Roach has a "Neutral" rating on YETI shares with a 12-month price target of $28.
On Tuesday, Aaron Jagdfeld, CEO of Generac Holdings, appeared on Bloomberg Television to discuss the company's long-term strategy to reduce reliance on Chinese supply chains. He outlined that Generac has been reducing its supply chain exposure to China since President Trump's first term and will reduce its 10% exposure to 5% in 18 months.
Seattle, Washington-based Wyze Labs, a popular seller on Amazon of smart home and wireless camera products, revealed on X earlier this month that their "first tariff bill" has "accelerated" efforts to leave China in two months, with serious consideration of restoring supply chains in the United States.
Trump's tariff shock is working. It has always been about pressuring corporate America to detach from cheap China supply chains and either friend-shore or re-shore.
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Just a reminder...