Tariffs Target Export Companies! Major firms such as Luxshare Precision, Sungrow Power, and Midea Group have seen their market values plummet by over 10 billion yuan!
On April 3rd, the Trump administration officially launched a global tariff war dubbed “Liberation Day,” imposing an additional 34% tariff on Chinese goods. This sudden tariff policy is akin to a black swan event, which is likely to increase the costs of Chinese export products significantly. Should companies decide to pass these additional tax costs onto their product prices, their competitiveness in the international market will be directly weakened, leading to substantial impacts on order volumes and profit margins.
In this tariff crisis, companies with substantial overseas revenues and a high proportion of international sales have undoubtedly become the primary targets of these tariffs. Data indicates that by the close of trading on April 3rd, nine companies experienced a collective market value loss exceeding 100 billion yuan in just one day. Notably, Luxshare Precision and Sungrow Power saw their stock prices drop by over 7%.
Specifically, Luxshare Precision hit its daily limit down, resulting in a market value decline of 28.482 billion yuan, making it the company with the highest market value loss that day. As a global leader in manufacturing precision components for consumer electronics, Luxshare specializes in connectors, cable assemblies, and acoustic devices. Serving as a core supplier in Apple’s supply chain, its products such as the AirPods charging case and MacBook hinges hold a global market share exceeding 40%.
From 2021 to 2023, Luxshare’s average overseas revenue reached an impressive 181.338 billion yuan, with international sales accounting for 90.96% of its total revenue. Such a high proportion of foreign revenue inevitably increases the company’s operational risks abroad due to this new tariff policy.
Aside from Luxshare, CATL (Contemporary Amperex Technology Co., Limited) also faced significant challenges, with its market value declining by 26.685 billion yuan and stock prices falling 2.43%. Furthermore, the tariff policy has adversely impacted export-oriented photovoltaic companies like Sungrow Power, which has a high overseas revenue ratio of 43.85%, resulting in a sharp stock price decline of 7.27%.
Chart Explanation: Companies with the highest market value losses on April 3rd.
