Australian appliance maker Breville is pressing ahead with its plan to move the bulk of its US-focused manufacturing out of China as investors welcome stronger sales and progress on its supply chain overhaul.

At the company’s annual general meeting in Sydney, chief executive Jim Clayton (pictured) told shareholders that Breville’s diversification strategy, which was first sparked by Trump’s tariffs, is “on track” and delivering results.

Clayton said Breville will have 80% of its US products made outside China by mid-year and will next focus on further product migration, localisation and cost efficiency.

The update lifted Breville shares as much as 6.6% to $31.37, a five-week high, after the company confirmed that sales trends remain positive and that premium consumers are holding firm despite global cost-of-living pressures.

Analysts at E&P and Citi said the comments should boost market confidence, noting that investors may also be encouraged by signs the US Supreme Court is sceptical of the legality of Trump’s tariff regime.

Breville began diversifying its manufacturing several years ago, expanding into Mexico and Southeast Asia to reduce reliance on China.

The company expects just 10% of its purchases to be exposed to the US-China trade relationship by early 2026, falling further later that year.

But despite the production shift, Breville is not abandoning China as a market.

The company recently launched direct sales of its espresso machines there, tapping into China’s fast-growing home coffee market.

While Breville’s share price remains around 15% below its August high, analysts expect momentum to build into the crucial November-December trading period, which typically accounts for nearly 40% of annual revenue.