Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 3

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 3
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 4, 2025, the Chinese government announced that China would impose a 34% tariff on goods imported from the United States.
President Trump responded by further imposing an additional 50% tariff on goods imported from China that brings the total additional
tariff rate levied on Chinese goods since 2025 to 104%. On April 9, 2025, China retaliated against U. S. tariffs by imposing tariffs of
84% on goods from the United States. On April 9, 2025, President Trump suspended reciprocal tariffs imposed on trade surplus countries
for 90 days with exception of China, which faces an additional 41% tariff increase that brings the total additional tariff rate levied
on products from China since 2025 to 145% which has made export of our products to the United State impossible. On April 11, 2025, China
retaliated against U. S. tariffs by imposing tariffs of 125% on goods from the United States.

As
of the date of this annual report, there is still a high degree of uncertainty surrounding U. S. tariff policy, how it will be implemented,
and how other countries will react to it. It also remains uncertain whether increased tariffs and trade tensions will create further
disruptions and uncertainties to the international trade and lead to a downturn to the global economy.

The
previous tariffs on products from Chinese have resulted in a material negative impact on our business and results of operations as we
had to reduce our sales prices and profit margin to absorb some of the tariffs while still lost some orders, and these new tariffs or
any additional actions will increase in the prices of our products and adversely affect the Company’s revenues and profitability
or even make our export to United States impossible.

We
continue to evaluate the impact of currently effective tariffs as well as other recent changes in foreign trade policy by the U. S. administration
on our products. At this time, it is unknown how long U. S. tariffs on Chinese goods will remain in effect or whether additional tariffs
will be imposed. Depending upon their duration and implementation, as well as our ability to mitigate their impact, these changes in
foreign trade policy and any recently enacted, proposed and future tariffs on products from China, as well as general uncertainty in
the tariff environment, will materially and negatively impact our business, results of operations and liquidity if the U. S. and China
couldn’t reach a deal to reduce the tariffs from the current level.