ALERT: Tariffs Pose No Material Impact to Highway Holdings' Business

Highway Holdings (Nasdaq: HIHO) has announced that recent U.S. tariff increases on Chinese imports will not materially impact its business operations.

Rhea-AI Summary

Highway Holdings (Nasdaq: HIHO) has announced that recent U.S. tariff increases on Chinese imports will not materially impact its business operations. The company revealed that only 4% of its total product exports to the U.S. over the past year, with 3% originating from China and 1% from Myanmar.

The company's CEO Roland Kohl emphasized that most of their revenue comes from European customers, with minimal U.S. market exposure. Additionally, Kohl suggested that increased tariffs on Chinese imports could potentially benefit Highway Holdings' Myanmar operations, as Chinese manufacturers might relocate production to countries with lower tariff rates like Myanmar.

Positive

• Minimal exposure to US-China trade tensions with only 3% exports from China to US
• Strong European customer base reducing market concentration risk
• Strategic advantage with Myanmar operations offering lower tariff alternatives
• Potential business growth opportunity from Chinese manufacturers relocating to Myanmar

Negative

• None.

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HONG KONG, April 15, 2025 /PRNewswire/ -- Highway Holdings Limited (Nasdaq: HIHO, the "Company" or "Highway Holdings") today confirmed it does not expect a material impact from the recent imposition of higher U.S. tariffs on imports into the U.S. from China. The Company had less than 4% of its total products exported to the U.S. over the last twelve months, with approximately 3% from China and approximately 1% from Myanmar, and the Company has no present dependence on the U.S. market.

Roland Kohl, chairman, president and chief executive officer of Highway Holdings, commented, "The recent imposition of higher tariffs worldwide by the U.S., and on imports from China in particular, has caused undue concern for our shareholders regarding the impacts on the Company. The reality is that almost all of our revenue is generated from customers in Europe, with less than 4% of our products exported to the U.S. over the last twelve months and no dependence on the U.S. market."

"The other reality is that higher tariffs on imports from China into the U.S. should help to improve our business in Myanmar, as Chinese companies affected by these tariffs may look to shift production to countries like Myanmar, which has substantially lower tariff rates. As a result, this is a very exciting time because such actions may benefit rather than harm a truly international company such as we are. We hope this helps clarify our unique position for shareholders as they continue to support the company."

About Highway Holdings Limited

Highway Holdings is an international manufacturer of a wide variety of quality parts and products for blue chip equipment manufacturers based primarily in Germany. Highway Holdings' administrative offices are located in Hong Kong and its manufacturing facilities are located in Yangon, Myanmar and Shenzhen, China. For more information visit website www.highwayholdings.com. 

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements., These statements are subject to risks and uncertainties. Such risks and uncertainties include, but are not limited to, economic conditions, tariffs, changes in the global trade environment, competitive pressures, governmental, political and technological factors affecting the company's revenues, operations, markets factors, and other factors discussed in the company's various filings with the Securities and Exchange Commission, including without limitation, the company's annual reports on Form 20-F.

View original content:https://www.prnewswire.com/news-releases/alert-tariffs-pose-no-material-impact-to-highway-holdings-business-302428810.html

SOURCE Highway Holdings Limited

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What percentage of Highway Holdings (HIHO) products are exported to the US market?

Only 4% of Highway Holdings' total products are exported to the US, with 3% from China and 1% from Myanmar operations.

How will US-China tariffs impact Highway Holdings (HIHO) business?

The company expects no material impact from US tariffs as less than 4% of their products are exported to the US market.

Which region generates most of Highway Holdings' (HIHO) revenue?

Most of Highway Holdings' revenue is generated from customers in Europe.

Could Highway Holdings (HIHO) benefit from US-China tariffs?

Yes, the company may benefit as Chinese manufacturers might shift production to Myanmar, where Highway Holdings has operations and faces lower tariff rates.