That’s the latest approach Beijing is taking in its dispute with Tokyo sparked by comments from Japanese Prime Minister Sanae Takaichi about the possibility of military conflict over Taiwan. Exports of all items with potential military applications to Japan will be immediately banned, China’s Ministry of Commerce said Tuesday.The most obvious victim of this threat will be rare-earth magnets made with the elements neodymium and praseodymium, and increasingly spiced up with rarer samarium, dysprosium and ter ...

South Korean cable and electrical equipment manufacturer LS Cable & System Ltd (LS) announced that it is looking to build a rare earth permanent magnet manufacturing facility in the US, with the aim of helping to meet growing demand for electric vehicle (EV) drive motors and automotive electronics. LS also expects strong demand growth for rare-earth magnets to come from the electronics, aerospace, defence, robotics, and wind power generator industries, as well as from a growing number of urban air mobilit ...

Group 1 - The U.S. government is using both incentives and tariffs to strengthen domestic semiconductor manufacturing [3][7] - The CHIPS and Science Act has led to significant investments in semiconductor manufacturing, with Texas Instruments planning to invest over $60 billion and Amkor Technology committing $7 billion [4][5] - A KPMG survey indicates that over half of semiconductor executives believe building advanced fabrication facilities domestically is necessary, although many are concerned that government funding may limit innovation [6] Group 2 - Tariffs and trade policy have become the top concern for semiconductor manufacturing leaders, surpassing issues related to talent and labor [8] - Approximately 54% of executives are focused on diversifying their supply chains geographically, while 45% prioritize making supply chains more adaptable to geopolitical risks [8] - Despite supply chain challenges, 93% of leaders expect revenue growth in 2026, driven by increased demand for AI and data centers [8]

Share Through this collaboration, Niron Magnetics and Moog are developing and testing advanced technologies for defense systems, while reducing the use of rare earths. Moog is evaluating the potential use of Niron Magnetics' breakthrough Iron Nitride magnet technology in applications that enable the transformation of electric input signals into precise mechanical motion. "In an increasingly dynamic global landscape, reducing reliance on rare earth minerals strengthens supply chain resilience and enhances Mo ...

By Laurie Chen BEIJING, Dec 10 (Reuters) - European firms are accelerating efforts to diversify away from Chinese supply chains as Beijing's self-reliance drive and export controls deepen global trade uncertainty, the European Union Chamber ​of Commerce in China said on Wednesday. China's trade surplus topped $1 trillion for the first time in November, ‌as exports to Europe, Australia and Southeast Asia surged in the wake of U.S. tariffs, fuelling diplomatic tensions over unsustainable trade imbalances. ...

Core Insights - Tesla Inc. has requested its suppliers to eliminate China-made parts in the production of U.S. cars due to rising geopolitical tensions between the U.S. and China [1] - The company has initiated a strategy to replace Chinese components with parts sourced from other countries, aiming to complete this transition within the next one to two years [2][3] Supply Chain Strategy - The decision to reduce reliance on Chinese components is part of a broader strategy influenced by tariffs imposed on Chinese imports, which has accelerated the shift [3] - Tesla is actively working to secure additional non-China-based suppliers, although challenges persist, particularly concerning lithium-iron phosphate batteries [5] Market Context - The ongoing U.S.-China trade tensions have affected China's role as a major producer and exporter of auto parts, including critical components like chips and batteries [4] - Recent supply disruptions, particularly in automotive chips due to disputes between China and the Netherlands, have further motivated Tesla to diversify its supply chain [4] Sales Performance - Tesla's decision to move away from China-made components coincides with a significant decline in sales in China, with a reported 36% year-over-year drop in October [5] Rare Earth Concerns - China's control over rare earth exports, essential for various tech industries, adds complexity to the situation, impacting global supply chains, including those of major companies like Apple Inc. [6]

Financial Data and Key Metrics Changes - Revenue for Q2 2026 increased by 4.3% to $42 million compared to $40.2 million in the same quarter last year [14] - Gross profit decreased to $6.3 million from $7.1 million, with gross profit margin declining to 15% from 17.5% [15] - Operating income slightly decreased to $1.09 million from $1.13 million [16] - Net income was $479,000 or $0.04 per diluted share, down from $665,000 or $0.05 per diluted share in the prior year [16] - Comprehensive income attributable to common stockholders decreased to $440,000 from $663,000 [17] - Cash and restricted cash totaled $13.7 million, with net working capital at $35.2 million [17] - Net cash provided by operating activities was approximately $318,000, down from $2.4 million in the same period last year [18] Business Line Data and Key Metrics Changes - The company successfully completed the expansion of manufacturing facilities, increasing production capacity by approximately 15% [6] - The diversification of the customer base and product mix is aimed at enhancing year-round production stability [7] Market Data and Key Metrics Changes - Jordan is increasingly recognized as a preferred manufacturing hub due to favorable tariff rates compared to other sourcing countries [5] - Apparel exports from Jordan to the U.S. benefit from a 15% tariff, significantly lower than rates from other countries [5] Company Strategy and Development Direction - The company is focusing on long-term expansion plans, including potential acquisitions and developing its own land [6] - The strategy includes diversifying the customer base and product mix to reduce seasonality impacts [7] - The goal is to gradually improve gross profit margins to approximately 20% through increased automation and economies of scale [8] Management's Comments on Operating Environment and Future Outlook - Management remains vigilant about regional geopolitical uncertainties and tariff developments while advancing growth strategies [8] - Revenue for Q3 2026 is expected to increase by 19% to 21% compared to the same quarter last year, with gross margin anticipated to be approximately 13% to 15% [19] Other Important Information - The Board of Directors approved a regular quarterly dividend of $0.05 per share payable on November 26, 2025 [18] Q&A Session Summary Question: Revenue guidance for the third quarter breakdown - The company does not break down revenue guidance by capacity increase versus demand increase, but overall capacity has increased by about 10% to 15% [22] Question: Path to improving gross margins to 20% - Management indicated that achieving a 20% gross margin is a long-term goal that will take a few years, with current margins expected to remain flat or lower due to new customer onboarding [24][25] Question: Context on inventory increase - Inventory is up 30% year-over-year due to preparing for a large volume customer, which is atypical for the season [30] Question: Expansion plans and customer details - Expansion is driven by both existing and new customers, with significant orders from legacy customers and new partnerships [35][36] Question: Tariff impact and customer sourcing - Customers are shifting orders from countries like China and India to Jordan due to lower tariffs, enhancing the company's competitive position [40][42] Question: Q4 performance expectations - Q4 is expected to be better than previous years, with full booking through February indicating a strong demand outlook [46]

Core Insights - The Trump administration has granted a one-year hold on additional tariffs on footwear imports from China, providing temporary relief to the industry [1][4] - The new trade arrangement suspends heightened reciprocal tariffs on imports from China until November 10, 2026, with tariffs on shoe imports ranging from 20% to 27% [2][3] Industry Impact - The footwear industry views the new trade deal as a guarantee for most of 2026, allowing companies to plan with more certainty [4] - Industry leaders express optimism about the pause on tariff escalation, emphasizing the need for durable trade agreements for long-term stability [5] Company Strategies - Companies like Deer Stags acknowledge that while the reduction in tariffs to 20% is an improvement, it still exerts pressure on cash flow and margins [7] - Firms such as Steve Madden Ltd. have returned some production to China due to logistical and quality considerations, despite previous moves to diversify sourcing [8][9] - Ground Up International has strengthened its supply chain diversification over the past 18 months, viewing the tariff hold as an opportunity to further diversify [11] Future Considerations - The fashion industry anticipates that China will remain a viable sourcing option through early Fall 2026, but companies are advised to maintain flexibility in sourcing strategies [13][14] - The upcoming Supreme Court decision regarding Trump's tariffs could introduce further uncertainty, with potential implications for sourcing decisions and refund processes [15][16]

Core Insights - Safilo Group has demonstrated resilience amid tariff and foreign exchange challenges, with improved sales and margins in the first nine months of 2025, driven by strong performance in Asia-Pacific and Europe [1][4]. Financial Performance - Sales for the first nine months of 2025 increased slightly by 0.1 percent to 758.4 million euros from 757.4 million euros year-over-year, with a 2.2 percent rise at constant exchange rates [2]. - In the third quarter, sales decreased by 2.1 percent to 220.8 million euros compared to 225.4 million euros in the same period last year, but were up 2.1 percent at constant exchange rates [3]. - Gross profit in the third quarter totaled 131.7 million euros, a decrease of 1.2 percent year-over-year, while gross margin improved by 60 basis points to 59.7 percent [3]. Regional Performance - Prescription frames sales grew across all regions, with sunglass sales particularly boosting performance in Europe. Brands such as Carrera, David Beckham, and Marc Jacobs contributed positively [4]. - Sales in Europe rose by 3 percent to 334 million euros in the first nine months, while Asia-Pacific sales surged by 9.9 percent to 44 million euros [10]. - North American sales fell by 1.1 percent to 317.8 million euros, with a significant decline of 6.6 percent in the third quarter [11]. Margin and EBITDA - The adjusted EBITDA margin in the third quarter increased by 210 basis points to 10 percent from 7.9 percent year-over-year, with adjusted EBITDA rising 24.3 percent to 22.1 million euros [5]. - The company attributed margin improvements to effective mitigation actions against tariffs and favorable price/mix dynamics [6]. Debt and Cash Flow - As of September 30, net debt decreased to 30.4 million euros from 42.4 million euros at the end of June, with a positive adjusted figure of 10.7 million euros before IFRS 16 application [7][12]. - Free cash flow increased to 20.7 million euros in the third quarter, up from 16.9 million euros in the same period of 2024 [12].

Trade Policy Developments - Former President Donald Trump announced a new 10% tariff on Canadian goods, citing an anti-tariff advertisement from Ontario as the catalyst for this decision [2][3] - This new tariff adds to existing tariffs, including a 35% base tariff on many Canadian goods, 50% on steel and aluminum, and 25% on automobiles [3] Market Reactions - Despite the announcement of new tariffs, the TSX Composite Index rose by 166.79 points to 30,353.07, indicating resilience in Canadian markets [4] - U.S. futures and Asian equities surged following the announcement of a substantial trade framework with China, with major U.S. indices experiencing significant gains [6] U.S.-China Trade Relations - High-level talks in Kuala Lumpur led to a substantial framework for a trade deal between the U.S. and China, averting previously threatened 100% tariffs on Chinese goods [5] - Analysts predict that the U.S.-China trade framework could ignite a global market rally, providing optimism for investors [11] Canadian Trade Dynamics - Canadian trade representatives expressed frustration over the new tariffs, with some suggesting that businesses should prepare for a permanent 5-10% tariff [12] - The contrasting U.S. approach towards Canada and China highlights the unpredictable nature of Trump's trade agenda [13] Strategic Partnerships in Southeast Asia - Trump's visit to Southeast Asia resulted in trade agreements with Malaysia and Cambodia, aimed at diversifying supply chains away from China [10] - Malaysia's rare earth deposits position it as a key partner in U.S. efforts to reduce dependence on Chinese resources [10]