---
title: "TES: The impact of the U.S. tariff increase event is relatively low"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/235135802.md"
description: "TES announced that due to the impact of the U.S. tariff increase, the company's stock price has fluctuated significantly, but the extent of the impact is relatively low. The company has established a production base in Thailand, which is expected to achieve mass production in 2024, with 70% of export products to be produced in Thailand, as the tariff rate in Thailand is lower than that in China and Vietnam. In addition, the ODM business adopts an FOB trading model, which reduces the impact of tariffs on costs. The company will continue to increase the production ratio in Thailand and set up production lines in the U.S. with American partners to diversify risks"
datetime: "2025-04-09T04:11:06.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/235135802.md)
  - [en](https://longbridge.com/en/news/235135802.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/235135802.md)
---

# TES: The impact of the U.S. tariff increase event is relatively low

According to the Zhitong Finance APP, TES (003019.SZ) announced that recently, affected by the U.S. tariff increase policy (referred to as the "U.S. tariff increase event" or "this event"), the company's stock price has experienced significant fluctuations. The company is closely monitoring policy dynamics and timely assessing the impact of policy changes on the company. The following is an explanation of the impact of this event on the company and the corresponding measures:

This tariff increase is a global event that affects almost all participants in the industry. Therefore, when assessing the impact of this event on the company, it is necessary to comprehensively consider the tariff rates imposed on competitors' production locations. Starting from 2024, the company has established a production base in Thailand and plans to achieve mass production by the end of the year. Currently, 70% of the products exported to the United States are produced in Thailand. Since the tariff rate imposed on Thailand is lower than that of China and Vietnam, the company's level of impact in the overall competitive environment is relatively low. In addition, the tariffs incurred when goods shipped from Thailand enter the United States are mainly paid by the importer (client).

Whether produced in China or Thailand, the proportion of products exported to the United States does not exceed 40% of revenue. Furthermore, the ODM business often adopts FOB trade terms with clients (i.e., the relevant freight and tariffs after the goods leave the port of the producing country are borne by the client), which reduces the impact of tariff increases on the company's costs. Moreover, the company has maintained a certain inventory of its brand and automotive business in the United States, which can mitigate short-term immediate impacts and provide the company with time to negotiate prices with clients. The company will continue to increase the proportion of revenue from production and shipments in Thailand and promote the establishment of production lines within the United States in collaboration with long-term partners, further diversifying risks

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