Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 24

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1
Chunk 24
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 to our brand and a material and adverse effect on our business, prospects, financial condition and operating results.

The current tensions in international trade
policies and rising political tensions, particularly between the United States and China, may adversely impact our business and operating
results.

We source a significant portion
of our vehicle components from China. The application of sanctions, trade restrictions or tariffs by the U.S. or other countries
may adversely impact the industry supply chain. The U.S. government has implemented policies restricting international trade and
investment, such as tariffs, export controls, economic or trade sanctions, and foreign investment filing and approval requirements. These
actions may materially and adversely affect international trade, global financial markets, and the stability of the global economic condition.
In the past, the U.S. government has imposed higher tariffs on certain products imported from China to penalize China for what it
characterizes as unfair trade practices. China has responded by imposing higher tariffs on certain products imported from the United States.

In particular, in April 2025
the United States announced an across-the-board 10% tariff on all countries and individualized higher tariffs on certain countries, including
China. A great deal of uncertainty surrounds the state of tariffs and other trade measures worldwide. While the current U.S. administration
has been actively focused on trade, the exact implementation, amount, scope and nature of these tariffs remains unclear. It also remains
unclear how other countries will respond to the United States’ trade proposals and actions.

17

As of now, high reciprocal
tariffs are in effect between China and the United States and the United States has announced, but temporarily paused the effective date
of, tariffs on goods imported from many other countries, including Mexico, Canada, Taiwan and the European Union. Significant trade partners
such as Mexico, Canada and the European Union have announced retaliatory tariffs. Further, while the United States has exempted certain
technology products such as semiconductors and electronics from the reciprocal tariffs announced on April 2, 2025 such that our products
are not subject to the announced tariffs, it has also initiated Section 232 investigations on such products, possibly leading to the imposition
of specific tariffs on these products or on products that incorporate them.

We cannot predict what additional
actions, if any, may be taken with respect to tariffs or trade relations between the United States and China, what products may be
subject to such actions, or what actions may be taken by the China in