Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 33

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 33
---
 States has
announced the elimination of the “de minimis” exemption from customs duties and taxes for imported goods from China and Hong
Kong falling below a threshold value beginning May 2, 2025 and tariff exemptions for specific categories of products, including smartphones,
computers, semiconductors and other electronic goods. Such actions could give rise to further escalation of trade measures by the U. S
and impacted countries. Developments with regard to the timing and manner in which tariffs will be implemented, the amount, scope and
nature of tariffs, the countries subject to new or additional tariffs imposed by the U. S., and tariffs imposed by other countries on goods
imported from the U. S. are rapidly evolving and may change unexpectedly at any time.

Further, changes in U. S. trade policy could result
in more U. S. trading partners adopting responsive trade policy making it more difficult or costly for us to source certain inputs for
our products and to export our products to certain countries. Any of the measures outlined above can result in increased costs for goods
imported into the U. S. This in turn could require us to increase prices to our customers, which may reduce demand or, if we are unable
to increase prices, result in lowering our margin on goods and services sold. To the extent that trade tariffs and other restrictions
imposed by the U. S. increase the price of semiconductor equipment and related parts imported into the U. S., the cost of our materials
may be adversely affected and the demand from customers for products and services may be diminished, which could adversely affect our
revenues and profitability. See “ - Newegg’s Business Model” for more information about direct sales and marketplace.

We cannot predict future trade policy, the terms
of any renegotiated trade agreements or additional imposed tariffs and their impact on our business. Moreover the evolving nature of trade
restrictions, the occurrence of a trade war, or other governmental action related to tariffs or trade agreements or policies, have the
potential to adversely impact demand for our products, our costs, our customers, our suppliers, and the U. S. economy, which in turn could
adversely impact our business, financial condition and results of operations.

Changes in U. S. social, political, regulatory
and economic conditions or in laws and policies governing foreign trade, manufacturing, development and investment in the territories
and countries where we currently develop and sell products, and any negative sentiments towards the United States as a