Strategic Shift to Bypass Tariffs
Logitech International is making swift progress in relocating its manufacturing footprint away from China as part of a broader effort to navigate U.S. tariff headwinds. Speaking to Reuters on Wednesday, CEO Hanneke Faber affirmed that the company is “well on track” to cut its China-based production for U.S.-bound goods to just 10% by year-end — a steep decline from the 40% share it once held.
Currently, China accounts for just over 30% of Logitech’s U.S.-imported products, down significantly as the company accelerates relocation efforts. The push comes in response to U.S. tariffs of up to 30% on certain electronics, imposed during the Trump administration — a policy whose future remains uncertain amid ongoing trade talks.
To mitigate the impact, Logitech has begun shifting its production to a diversified network of contract manufacturers across Malaysia, Mexico, Taiwan, Thailand, and Vietnam.
“The manufacturing diversification that we’ve been doing out in Asia and in Mexico is exemplary,” Faber noted.
“We’re not seeing any material cost increases from moving stuff around, and that’s quite a feat.”
Price Adjustments Without Additional Burden
To help offset the financial strain from tariffs, Logitech implemented a 10% price increase on its products in the U.S. market. However, the company has no plans for further hikes, signaling confidence in its ability to manage costs through strategic supply chain agility.
“The tariffs are not a small thing, but we’ve been super agile, changing plans at a moment’s notice,” Faber said.
“That’s what we’ll continue to do.”
Alongside cost control, Logitech continues to invest in new product development, positioning itself for long-term competitiveness despite global economic uncertainty.
Growing Focus on B2B: Offices, Hospitals, and Schools
While traditionally viewed as a consumer electronics brand, Logitech is increasingly carving out a strong presence in the business-to-business (B2B) space — an area that Faber described as a “big strategic priority.”
Nearly 40% of Logitech’s total business now comes from B2B operations, a significant leap driven by focused investments in specialist sales teams and tailored product offerings for enterprise, healthcare, and educational settings.
One standout growth area has been video conferencing equipment, which saw sales increase at more than twice the pace of Logitech’s overall growth. This surge reflects a wider shift in how workplaces and institutions communicate in a post-pandemic landscape.
“Logitech is a consumer company, but we’ve quietly built about 40% of our business into a B2B business,” said Faber.
“We’re still relatively young, so we are building up our capabilities.”
Looking Ahead: Agility as a Competitive Advantage
As global supply chains remain under pressure and geopolitical risks continue to evolve, Logitech’s proactive approach — from manufacturing diversification to B2B expansion — positions the Swiss-American company to thrive in an uncertain future.
While tariffs remain a formidable challenge, Faber believes Logitech’s adaptability will continue to serve it well.
“We’ve been super agile, and that’s what we’ll continue to do.”