Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 90

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 90
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 84% on imports from China, and 17% on imports from Israel. Following such executive order, the Trump Administration raised the tariffs on China to around 125% while suspending country-specific reciprocal tariffs for all countries for a period to allow for negotiations. Subsequent to such executive orders, the Trump Administration announced a trade deal with the UK and a postponement of the application of certain tariff amounts on China. Tariffs and trade wars, or the threat thereof, between the U. S. and countries such as China, Canada, Mexico, the UK, the EU and other countries has disrupted global supply chains, raised our supply costs, and has adversely affected our ability to execute key elements of our strategy. This can also impede the transition to electric vehicles and/or delay the implementation of economic competitiveness policies. More specifically, for our P7 products we need to purchase various battery types from certain suppliers based in China, which is more subject to risks associated with international trade conflicts between the U. S. and China, particularly with respect to tariffs and export and import controls and laws. In addition, we manufacture our REEcorner in the UK. Because various items in our supply chain are, and may continue to be, subject to tariffs, we have experienced significant cost increases with respect to our previously intended vehicle production, which we believe were unexpected, unforeseeable, and unpreventable. As a result, we have had to delay our vehicle production and expect such tariffs (including the surrounding uncertainty therefrom) to continue to significantly impact our business, operations, and vehicle production goals. If we return to production of our vehicles and are unable to pass the costs of such tariffs on to our customer/end-user base or otherwise mitigate such costs, or if demand for our vehicles decreases due to the higher cost, our results of operations and overall financial performance could be materially adversely affected.

Global Competition for Automotive Vehicles

The worldwide automotive market is highly competitive and volatile. The demand for automobiles is affected by a number of factors including social, political and general macroeconomic conditions, introduction of new vehicles and technologies, and costs incurred by customers to purchase or operate vehicles. Additionally, the worldwide automotive industry is in a period of global competition which may continue for the foreseeable future, including significant competition from OEMs and other vehicle manufacturers in China, and in general the competitive environment in which we operate is likely to intensify.

Our business performance is related to global automotive sales and automotive vehicle production by OEMs and technology companies. Economic conditions in North America, Europe and Asia