Multiple fruit industry chain factories hit the daily下跌limit: tariffs are borne by customers, and it's impossible to lose money for him to do it.

(By Yang Yiting, Edited by Lu Dong)

As of the closing date of April 3, all three major Apple supply chain companies on the A-share market, Luxshare Precision, GoerTek Inc., and Lens Technology, had their stock prices hit the daily limit down. At the same time, Anke Innovation, Goodix Technology, Tianjian Group, Fuliwan, Lingyi Intelligence Manufacturing, and Universal Scientific Industrial (USI) and other stocks fell to varying degrees.

Observer Network contacted GoerTek Inc. in the capacity of an individual investor. The staff member said that the stock price hitting the daily limit down was related to the additional tariffs imposed by the Trump administration. "During Trump's first term, our major client, a U.S. technology giant, applied for an exemption, so there were no issues during his first term. In his second term, he brought this matter up again, so our clients will definitely need to apply for exemptions as well. We are actively communicating with our clients to see the progress of their applications."

"The supply chain cannot bear the burden of these tariffs because they add 30-40% more tariffs, while the profit margin of the entire supply chain is only a few percentage points. We cannot afford to lose money for them, so our clients will have to bear this cost, or the end consumers, who are essentially our clients' clients, will have to bear it. Once this cost is passed on to the end consumers or clients, it will be a huge blow to our clients, affecting sales volume, revenue, profits, and all financial indicators," the staff member stated.

This is not just happening in China; Southeast Asia has also become a major area affected by U.S. tariffs, with Vietnam facing particularly high rates, as high as 46%, far exceeding other countries.

GoerTek Inc. has been investing in Vietnam for many years. Since 2012, GoerTek Inc. established Goertek Electronics (Vietnam) Co., Ltd., with a registered capital of $4 million. In 2019, it also established GoerTek Technology (Vietnam) Co., Ltd., mainly producing products such as AirPods, smartphones, drones, etc.

In 2024, the revenues of GoerTek Technology (Vietnam) Co., Ltd. and GoerTek Electronics Technology (Vietnam) Co., Ltd. were RMB 20.192 billion and RMB 14.243 billion, respectively, with net profits of RMB 1.317 billion and RMB 292 million. In 2024, the total revenue of GoerTek Inc. was approximately RMB 100.954 billion, with a net profit attributable to shareholders of RMB 2.665 billion. The revenue of the subsidiaries in Vietnam accounted for about 34.1% of the total revenue, and the profit accounted for 60%.

Similarly, Luxshare Precision invested in Vietnam in 2016, establishing Luxshare Precision (Vietnam) Co., Ltd. in Bac Giang Province. Subsequently, it set up Luxshare Precision (Yunzhong) Co., Ltd. and Luxshare Precision (Yen Bai) Co., Ltd. in provinces such as Bac Giang and Yen Bai, constructing production bases. It is reported that Luxshare Precision mainly produces AirPods, iWatch, TWS, and other products for Apple in Vietnam.

Lens Technology also established Lens Technology (Vietnam) Co., Ltd. in Vietnam. According to the financial report, the amount of construction in progress at Lens Technology as of the end of 2024 was RMB 1.32 billion, mainly due to the ongoing construction of Lens Technology’s second park in Vietnam.

As of publication, the market values of Luxshare Precision, GoerTek Inc., and Lens Technology were RMB 256.7 billion, RMB 81.6 billion, and RMB 112.5 billion, respectively.

The United States has always been Vietnam's largest export market. In 2024, Vietnam's exports to the United States amounted to $142 billion, accounting for 30% of Vietnam's GDP. However, for Trump, Vietnam's trade surplus with the United States exceeded $123 billion in 2024, representing "extreme trade unfairness."

With Trump's "reciprocal tariff" policy implemented beyond expectations, Vietnamese Prime Minister Pham Minh Chinh held an emergency government meeting at midnight on April 3. The Minister of Industry and Trade, the Governor of the Central Bank, and the Minister of Finance attended the meeting. After the opening, the entire Vietnamese stock market fell, with the benchmark VNI index falling 6.69% during trading, especially the manufacturing, utilities, and small and medium-sized enterprise stocks showing particularly pessimistic sentiment.

"This 'mutual destruction' approach has left everyone in a difficult situation, so our major clients will definitely apply for exemptions to protect their own interests. Let's wait and see what happens next while we are actively communicating with our clients. Moreover, it's not just China; he has imposed tariffs on over 70 countries and regions, making people from over 70 countries and regions lose money to work for the U.S., which is unrealistic. So let's wait and see," the aforementioned staff member said.

However, it is worth noting that Trump previously stated that he would not grant Apple exemptions as he did in his first term. On April 2, after-hours trading, Apple's shares fell as much as 7.9%.

This article is an exclusive piece from Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7488998367960236583/

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