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Xerox expects a $50 million impact to its operating income due to rising tariffs, prompting the company to accelerate plans to shift production out of China. CEO Steve Bandrowczak and President & COO John Bruno emphasized that the company’s cost of sales is affected by less than 10% due to reciprocal tariffs, but the long-term strategy now includes reducing reliance on Chinese manufacturing altogether.
“Plans are in place today to shift most China-produced goods to countries with lower tariffs,” Bruno said, signaling a clear move toward supply chain diversification. Xerox is focusing on alternative manufacturing locations to offset the financial blow and maintain profitability.
Despite the tariff headwinds, the company’s core print services and financing segment — which makes up more than 60% of Xerox’s total print revenue — remains largely unaffected due to its minimal dependence on imported products.
The move underscores a broader trend among U.S. firms seeking to mitigate geopolitical and trade risks by relocating supply chains to more tariff-friendly regions.
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