Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 192

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 5
Chunk 192
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 4, 2025. On April 2, 2025, President Trump announced that the United States would impose a 10% tariff on all countries, effective on April 5, 2025, and individualized higher tariff rates on countries with which the United States has proportionately large trade deficits in goods, including, among others, a 34% additional tariff on goods imported from China that brings the total additional tariff rate levied on Chinese goods since 2025 to 54%. On April 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. We must develop markets in Asia and other regions to mitigate the natively impact caused by this tariff war. On April 11, 2025, China retaliated against U.S. tariffs by imposing tariffs of 125% on goods from the United States.
 
We deployed alternative pricing strategies to alleviate the negative impact from COVID-19 and previous higher tariffs as we raised our unit product selling price in July 2021. Due to the price increase, slow recovery from COVID-19 and the high interest rate in the US, our revenues decreased by approximately $5.7 million or 47% for the year ended December 31, 2023 compared to 2022. Our profit margin decreased to 9.8% for 2023 from 18.1% for 2022. If the idle capacity impact was removed, our profit margin decreased to 15.2% in 2023. The decrease in margin during 2023 was mainly due to the increase of labor costs and raw materials such as zinc alloy and iron.
 
Our revenues from sales of door locksets increased by $1,063,194, or 16.5% for the year ended December