This week, US President Trump's tariff deadline is set to expire.
After the 'Liberation Day' stock market crash, Trump placed a 90-day pause on tariffs to allow trading partners to reach deals with the United States.
Unless agreements are reached before 9 July, reciprocal tariffs of up to 50% will be reinstated.
Back in April, the S&P/ASX 200 Index (ASX: XJO) reacted negatively when Trump first unveiled his tariffs. However, some companies fared worse than others.
As the 9 July deadline looms, investors will be keeping a close eye on certain ASX 200 companies that could be affected by any deals reached (or not reached). Which are they?
On April, 3 ASX 200 with heavy tariff exposure companies fell sharply when investors discovered their fate.
These were Breville Group Ltd (ASX: BRG), Lovisa Holdings Ltd (ASX: LOV), and Ansell Ltd (ASX: ANN).
Breville manufactures 90% of its products (by value) in China and sells 45% of its products into the US.
Meanwhile, Lovisa's products are primarily sourced from China, with the United States having been a rapidly growing market for Lovisa in recent years.
Ansell manufactures its products in nine countries, the largest being Malaysia and Sri Lanka. In FY24, nearly half of its 42% of revenue was generated in the US. In an April research note, Macquarie described Ansell as the "most exposed" to tariffs in its coverage universe.
The ongoing negotiations between China and the US have been widely publicised. On 28 June, Reuters reported that the two nations had reached an agreement to deescalate trade tensions. However, the finer details remain unknown. Earlier this month, President Trump announced it had set Vietnam's tariff rate at 20% (Vietnam had previously faced a tariff rate as high as 46%). According to Bloomberg, this gives Vietnam a clear regional advantage over rivals. China appeared to agree, voicing opposition to that deal. This could complicate the final outcome between the United States and China, and affect the tariff rate applied to Breville and Lovisa.
Companies facing steep tariffs may also look at moving their manufacturing hubs to other countries.
Back in April, iPhone maker Apple Inc (NASDAQ: AAPL) announced its intention to move a significant portion of its iPhone manufacturing from China to India by the end of 2026. This announcement sparked backlash from US President Trump, who even floated the idea of placing a company specific tariff on Apple as a deterrence mechanism.
The situation remains complicated. This week could prove to be a particularly dramatic week on the tariff front.
免责声明:投资有风险,本文并非投资建议,以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请,作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考,不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证,投资者应自行研究并在投资前寻求专业建议。