Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 32

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 32
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 the last several years, the U. S. Department
of Commerce has issued a large and evolving set of amendments to its Export Administration Regulations that have (1) expanded the list
of parties with whom we cannot do business, (2) eliminated the applicability of certain license exceptions for exports to countries we
do business in, (3) imposed significant licensing requirements on the exports of some of our products to others, and (4) imposed new restrictions
on the export of commodities and technology used in development, production, and use of certain semiconductor manufacturing equipment,
advanced integrated circuits, and advanced computing applications. These changes have significantly expanded export license requirements
for U. S. companies that sell certain advanced computing and related equipment to counterparties located in or headquartered in China and
other countries. They have also impacted from where and from which suppliers companies like Newegg can source different inputs for its
products.

The
U. S. has implemented a series of rapidly changing tariffs on certain foreign goods and may implement additional tariffs in the future,
which we expect will negatively affect our business and our customers. For example, in February 2025, the U. S. administration issued three
Executive Orders imposing tariffs of 25% on goods imported from Canada and Mexico and an additional 10% on goods imported from China (including
Hong Kong). Furthermore, 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 an individualized reciprocal higher tariff on countries with which the United States has the largest trade
deficits, including a 34% additional reciprocal tariff on goods imported from China that brings the total tariff rate to 54%. On April
4, 2025, the Foreign Ministry of China announced that China would impose a retaliatory 34% tariff on goods imported from the United States.
On April 8, 2025, President Trump announced an additional 50% tariff on Chinese imports. The Trump administration proceeded to implement
a 104% tariff on goods imported from China on April 9, 2025. Subsequently, on April 10, 2025, President Trump announced a temporary suspension
of reciprocal tariff measures targeting most U. S. trading partners for a 90-day period, while concurrently escalating tariffs on Chinese
goods to 145%. On April 11, China announced that it would increase its retaliatory tariff to 125%. In addition, the United