Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 50

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 50
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 April 10, 2025, the U.S. imposed a 34% “reciprocal tariff” on top of existing levies, effectively raising the
minimum tariff on Chinese goods to 54%. On April 11, 2025, the U.S. announced that consumer electronics would be exempt from tariffs
imposed on most countries, but a 20% tariff would remain in place for electronics imported from China. Later that same day, in a further
retaliatory move, China increased tariffs on U.S. imports to 125%.

Historically,
tariffs have led to increased trade and political tensions, between the U.S. and China, as well as between the U.S. and other countries.
Political tensions as a result of trade policies could reduce trade volume, cross-border investment, technological exchange, and other
economic activities between major economies, resulting in a material adverse effect on global economic conditions and the stability of
global financial and stock markets. Moreover, the heightened geopolitical uncertainty and potential for further escalation may discourage
investments in securities issued by China-based companies (including us) and affect the global macroeconomic environment. For example,
it has been reported that the U.S. administration may consider imposing further restrictions or prohibitions on trading of Chinese securities.
Such geopolitical developments could materially and adversely affect our overall financial performance and prices of our Common Stock.

Furthermore,
such tensions may lead to consumer boycotts, increased security measures, and travel restrictions, all of which could negatively affect
our ability to conduct business, maintain supply chain operations, and expand into new markets. Any restrictions on international trade
and capital flows may have a negative impact on our ability to access capital and expand our operations. As a result, any of these events
could have a material adverse effect on our business, financial condition, and results of operations. The Maca Series products are exclusively
distributed in the Asian market, with raw materials, supply chains, and sales operations based in China. In contrast, DRIPKIT products
are sold solely in the U.S. market, with their raw materials, supply chains, and sales operations entirely within the United States.
As both product lines operate independently and do not involve cross-border trade, the Company is not directly affected by changes in
export tariffs or foreign import policies. Accordingly, as of the date of this report, ongoing geopolitical tensions have had a limited
impact on our business.

47

ITEM
1B. UNRESOLVED STAFF COMMENTS

Not
applicable.

ITEM