Cisco's CFO, Scott Herren, outlined the company's strategic preparations for potential tariffs during their Q2 FY 2025 earnings call. Cisco has reduced its reliance on China by 80% and is ready to adapt its supply chain to counteract tariff effects. They have anticipated increased costs from tariffs on China, Mexico, and Canada and have modeled scenarios, including the impact of steel and aluminum tariffs. Herren mentioned that price adjustments are an option, although several factors need consideration before implementing them.
We have price as a lever, but there's a number of considerations to go through before we got there.
This is a dynamic environment, but one we have spent a significant amount of time planning for.
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