Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 187

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1A
Chunk 187
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 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 retaliation. The adoption and expansion of trade restrictions, the
occurrence of a trade war, or other governmental action related to tariffs, trade agreements or related policies have the potential to
adversely impact our supply chain and access to equipment, our costs and our product margins. The additional tariffs imposed on components
or equipment that we source from China will increase our costs and could have an adverse impact on our operating results and financial
conditions in future periods.

We rely on third parties for quality control
on the parts sourced from China.

We rely on one of our principal
vendors in China to monitor the factories manufacturing the parts sourced from China for use in our vehicles. We have limited control
over the ability of third-party manufacturers to maintain adequate quality control, quality assurance and qualified personnel. If our
principal vendor fails