Volvo Cars on Tuesday announced plans to produce a new hybrid model in the US as its supply chain continues to feel the pressure from President Trump’s tariffs.The Swedish automaker is aiming to add a next-generation hybrid model to the production line at its Ridgeville, South Carolina plant near Charleston before 2030, the company said in a press release.“The Charleston plant is foundational to our strategic growth plan for the US,” Luis Rezende, president of Volvo Cars Americas, said in a statement Tuesda ...

Group 1 - The elimination of the de minimis exemption on August 29 has prompted retailers and online merchants to adjust their supply chains, as it previously allowed sub-$800 imports to enter the U.S. duty and tax-free [3] - Lululemon's U.S. e-commerce orders, which are largely fulfilled through Canada, will now incur duties that were previously avoided, leading to increased fulfillment costs [4] - The removal of the de minimis exemption is expected to impact Lululemon's gross margin significantly, accounting for approximately 170 basis points of the anticipated 220 basis point decline related to tariffs for the year [5] Group 2 - Lululemon anticipates a $320 million net impact on its 2026 operating margin due to higher tariffs and the removal of the de minimis exemption [6] - The end of the de minimis exemption and higher tariffs have led Lululemon to reduce its revenue and earnings expectations for 2025, with an expected $240 million hit to gross profit [7] - The company is exploring various strategies to mitigate the financial impact, including negotiating lower vendor rates and selectively increasing prices [7]

Investment Rating - The report does not explicitly provide an investment rating for the sectors discussed Core Insights - The report highlights the impact of increased US tariffs on various sectors including appliances, autos, industrial tech, and solar companies, with management expressing concerns over supply chain disruptions and capital allocation strategies China Consumer Durables - Companies derive an average of 35% of revenues from China exports and 7% from exports to the US [5] - Production is shifting to overseas factories, with some companies receiving more orders from US clients as they seek to restock before the tariff reprieve period ends [6] - There is low visibility on price re-negotiation, with companies cautious about raising prices due to market share concerns [6] - Ex-US demand remains stable, particularly in Europe, which is expected to absorb US capacity [6] - CAPEX visibility is low, with Mexico considered a safer investment location due to its free trade agreement with the US [6] China Autos - Companies derive 6%-26% of total revenue from China exports and 0%-10% from exports to the US [7] - Management believes US-China trade tensions have softened recently, with expectations of higher exports to Europe due to ongoing negotiations [7] - Auto suppliers report no order cancellations and are negotiating new prices, with some passing on the full tariff burden to customers [8][10] China Industrial Tech - Companies derive 15%-45% of total revenue from exports and 2%-20% from exports to the US [11] - Orders paused initially in early April but returned to normal by the second week, with some customers continuing their overseas construction plans despite tariff uncertainties [11] - Most companies have signed FOB contracts, meaning customers bear the tariff costs [11] - Companies are maintaining existing capacity expansion plans, with some pausing expansion until tariff policies are clearer [12] China Solar - Companies involved in solar exports have 0%-15% direct exports to the US and 35%-55% to other countries [17][18] - One company has stopped shipping ESS products to the US due to high tariffs, while others are expanding inverter capacity overseas [19] - Softening demand in the US is a key challenge, with concerns over potential price hikes dampening downstream demand [20] - Companies are considering scaling back US exposure if operational risks outweigh profitability compared to other regions [20]