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Tony Owusu: Shares of Fitbit are rising Wednesday after the company announced that it is moving production of all the smartwatches and trackers out of China in order to avoid tariffs in the country. Company says that now that its product are no longer Chinese made, it will avoid section 301 tariffs. It's been a long road coming for Fitbit. Last year during an earnings call, the company said that it was not the subject of tariffs of the Trump administration's tariffs, but it's changed as tune has said that in 2018, it started looking for alternatives and now it has found it. It did not say where it would move production to, but it definitely is moving production out of China. This news comes ahead of the Trump administration's trade war negotiations, which are scheduled to start on October 10th.

Fitbit (FIT - Get Report)  has had enough of the fallout from the trade war between the U.S. and China and as a result will move manufacturing operations outside of China for all of its trackers and smartwatches.

Starting in January 2020, the products will no longer be of Chinese origin, and therefore not subject to Section 301 tariffs.

"In 2018, in response to the ongoing threat of tariffs, we began exploring potential alternatives to China. As a result of these explorations, we have made changes to our supply chain and manufacturing operations and have additional changes underway," said Ron Kisling, chief financial officer of Fitbit.

Fitbit shares were rising 1.5% to $3.74 in trading Wednesday. The stock has declined more than 20% year to date.

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