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Under Armour will shift production away from China amid Trump's trade war

·Anchor, Editor-at-Large

With U.S. trade tensions with China running high, Under Armour (UA) looks to be charting a path away from making sneakers and compression T-shirts in the country.

The sportswear maker plans to source 7% of its products from China by 2023, according to a slide presented at the company’s investor day Wednesday. Currently, Under Armour gets about 18% of its units made in China.

A good chunk of the production will be shifted to Indonesia, Jordan, Vietnam, Cambodia and the Philippines. Oddly enough, products sourced from the Americas is expected to drop to 17% by 2023 from 20% presently.

Under Armour will shift some production out of China. Source: Under Armour.
Under Armour will shift some production out of China. Source: Under Armour.

It was just in 2016 that Under Armour launched a “Made in America” marketing blitz. The goal, at least at the time, was to get products to market quicker by using facilities in the United States. The company opened a 35,000-square-foot “innovation lab” in its hometown of Baltimore, MD. to support the initiative.

An Under Armour spokesperson did not immediately respond to a request for more details on the company’s sourcing plans.

Under Armour shares fell more than 8% Wednesday as the company let some on Wall Street down with its long-term sales growth and operating margin guidance.

The company by no means is alone in using current trade tensions with China to rethink supply chains in the country. CEOs at Hasbro, Funko and GoPro have confirmed a shift out of China sourcing in recent weeks to Yahoo Finance.

Brian Sozzi is an editor-at-large at Yahoo Finance. Follow him on Twitter @BrianSozzi

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