Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 19

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 19
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• political instability, war, natural disasters, or terrorism in key markets; and

• macroeconomic volatility or weakness in foreign markets, which could reduce demand for REE’s products.

If REE fails to successfully manage these risks, its business, prospects, operating results and financial condition could be materially and adversely affected.

Adverse global conditions, including macroeconomic, protectionist trade policies and tariffs, geopolitical uncertainty, and other events may negatively impact our financial results.

Global conditions, dislocations in the financial markets, or inflation could adversely impact our business. In addition, the global macroeconomic environment has been and may continue to be negatively affected by, among other things, instability in global economic markets, increased trade tariffs and trade disputes, rising inflation, instability in the global credit markets, banks and financial institutions entering receivership or becoming insolvent, supply chain weaknesses, instability in the geopolitical environment and increasing tensions, including between China and Taiwan and between the U. S. and Iran, and other political tensions, and foreign governmental debt concerns. Such challenges have caused, and may continue to cause, uncertainty and instability in local economies and in global financial markets, which may adversely affect our business. For example, the trade policies of the Trump Administration differ from those of the Biden administration and have led, and likely will continue to lead, to the renegotiation and/or termination of certain existing bilateral or multi-lateral trade agreements. In addition, tariffs have been, and will likely continue to be, imposed by the Trump Administration, and additional trade restrictions could be implemented on a broad range of products, geographic regions, or raw materials. The Trump Administration has also issued an executive order to review U. S. trade policies, practices, and agreements to address trade deficits and other economic security matters, including assessing whether the imposition of new or increased tariffs or other measures is required. Following such executive order, on April 2, 2025, the Trump Administration issued another executive order that imposed a minimum of 10% tariff on imports from all U. S. trading partners, including the UK, with increased tariff amounts for specific countries described in the executive order, including 24% on imports from Japan, 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