NextPlat Provides Statement on U.S. Tariff Impact on its E-Commerce Development Program

Rhea-AI Summary

NextPlat Corp (NASDAQ: NXPL) announced it will pause certain initiatives within its e-Commerce development program due to increased US/China tariffs on US-produced goods. The company is specifically halting plans for its Florida Sunshine brand of vitamins and supplements in the Chinese market, as the tariffs would significantly impact import costs and competitive positioning against local products.

Despite these challenges, NextPlat will continue selling OPKO Health Europe (OPKO) products in China, including nutraceuticals, supplements, and pet care items, as these are not US-produced and therefore not subject to the additional tariffs. The company is exploring opportunities to sell Florida Sunshine products in other markets.

Positive

• Continued sales of OPKO products in China unaffected by tariffs
• Expansion of OPKO product line to include pet care items
• Strategic flexibility to explore alternative markets for Florida Sunshine brand

Negative

• Material impact expected on anticipated sales of US products in China
• Forced pause of Florida Sunshine brand launch in Chinese market
• Reduced competitiveness against local Chinese products due to tariff costs

The Company Expects the Continued Sale of OPKO-Branded Products in China but is Pausing Activities for Future US-Produced Products Including its Florida Sunshine Brand of Vitamins and Supplements Due to Tariff Impact

COCONUT GROVE, Fla., April 11, 2025 /PRNewswire/ -- NextPlat Corp (NASDAQ: NXPL, NXPLW) ("NextPlat" or the "Company"), a global e-Commerce provider, today provided an update on the impact of current United States/China tariffs on its e-Commerce development program as a result of China's escalation in tariffs placed on US-produced goods imported into the country. This condition is expected to have a material impact on anticipated sales of US products into China.

The Company plans to pause certain initiatives within its e-Commerce development program which was launched in April 2023 to help U.S.-based businesses reach the vast Chinese consumer market through major online platforms like Alibaba's Tmall. This includes the introduction of a new line of vitamins and supplements under the Florida Sunshine brand name, since these offerings would be subject to the increased tariffs and would face significant import costs which Management believes will reduce its ability to compete with locally produced products. The Company is still reviewing opportunities to sell its Florida Sunshine products in other markets.

The Company intends to continue selling OPKO Health Europe (OPKO), a subsidiary of OPKO Health, Inc. (NASDAQ: OPK), products in China including an array of nutraceuticals and supplements as well as adding products for pet care, all of which are not produced in the United States and as such, are not subject to additional tariffs.

For more information about NextPlat, please visit www.NextPlat.com and connect with us on Facebook, LinkedIn and X.

About NextPlat Corp
NextPlat is a global e-commerce platform company created to capitalize on multiple high-growth sectors and markets including technology and healthcare. Through acquisitions, joint ventures and collaborations, the Company intends to assist businesses in selling their goods online, domestically, and internationally, allowing customers and partners to optimize their e-Commerce presence and revenue. NextPlat currently operates an e-Commerce communications division offering voice, data, tracking, and IoT products and services worldwide as well as pharmacy and healthcare data management services in the United States through its subsidiary, Progressive Care LLC.

Forward-Looking Statements
Certain statements in this release constitute forward-looking statements. These statements include the capabilities and success of the Company's business and any of its products, services, or solutions. The words "believe," "forecast," "project," "intend," "expect," "plan," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, including the Company's ability to introduce new products and services and its ability to grow and expand as intended, any of which could cause the Company to not achieve some or all of its goals or the Company's previously reported actual results, performance (finance or operating), including those expressed or implied by such forward-looking statements. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), copies of which may be obtained from the SEC's website at www.sec.gov. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.

Media and Investor Contact for NextPlat Corp:
Michael Glickman
MWGCO, Inc.
917-397-2272
mike@mwgco.net

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SOURCE NextPlat Corp.

FAQ

How will US-China tariffs impact NextPlat's (NXPL) e-commerce development program?

The tariffs will force NextPlat to pause the launch of US-produced products in China, including their Florida Sunshine brand, due to increased import costs affecting competitiveness against local products.

Which NextPlat (NXPL) product lines will continue sales in China despite tariffs?

OPKO Health Europe products, including nutraceuticals, supplements, and pet care items, will continue sales as they are not US-produced and exempt from additional tariffs.

What alternative markets is NextPlat (NXPL) exploring for Florida Sunshine products?

The company is reviewing opportunities to sell Florida Sunshine products in markets other than China, though specific markets haven't been disclosed.

When did NextPlat (NXPL) launch its e-Commerce development program for the Chinese market?

NextPlat launched its e-Commerce development program in April 2023 to help US-based businesses reach Chinese consumers through platforms like Alibaba's Tmall.