USA President-elect Trump posted on his social media account on November 26th local time, falsely claiming that all goods imported from China will be subject to an additional 10% tariff. Since Trump was elected, imposing tariffs on Chinese goods has become the most concerned topic for Chinese export enterprises. Beijing Roborock Technology (688169.SH) has been a representative of China's high-tech exports overseas in recent years. After the US imposed tariffs, is there a negative impact on the company's operation? The company recently responded that as a high-value technology product, Roborock robot vacuum cleaners are very popular in the US market, and the negative impact of tariffs on the company is very limited. At the same time, the company will further expand its market in the US, collaborate closely with distribution partners, and accelerate the growth of market share and sales volume in the US market.

Divergent opinions within the USA, Chinese companies may be affected to varying degrees.

In fact, Trump's long-standing hype about imposing tariffs and the specific tax rates have been changing repeatedly. The actual situation of the increased tariffs on Chinese goods remains unknown. However, within the USA, discussions about tariff issues are increasingly heated.

Recently, a report from the National Retail Federation (NRF) in the USA showed that Trump's proposal to impose tariffs on imported goods into the USA could significantly increase the prices of clothing, toys, furniture, household appliances, footwear, and travel goods.

The NRF report states that if the prices of goods rise too high, it will make it difficult for US retailers to absorb and pass on to consumers, causing many consumers to be unwilling or unable to pay. The report points out, "Tariffs are paid first by American importers... as products reach retail shelves, the cost of tariffs also shifts and is reflected in the form of higher prices for goods sold to American consumers."

Recently, many US retail industry giants have also stated that after the tariff increase, they will consider raising the retail prices of products to shift the costs. According to this NRF report, under the new tariffs, consumers will ultimately pay more for clothing, toys, furniture, household appliances, footwear, and travel goods.

Under the various interests at play in the USA, the situation of additional tariffs remains unclear, but for some enterprises with a large amount of export business, concerns over capital markets inevitably intensify their operational risks. Recently, worries about tariffs have also to some extent affected investor confidence, and the stock prices of some businesses engaged in export business have also been relatively sluggish.

Regarding the actual impact of the USA's imposition of tariffs on Chinese enterprises, some experts believe that in comparison to low-net worth, low-tech household goods, high-tech products with technological advantages have a stronger risk resistance in overseas markets. As a major single product of China's overseas expansion, robotic vacuum cleaners, with their technological advantages, have rapidly expanded in the USA market compared to local American robotic vacuum cleaner brands despite their higher prices in the past competition.

Technology products have a strong risk resistance, continuously expanding the North American market.

Currently, Chinese brand robotic vacuum cleaners have a significant leading advantage in major global markets. Among them, Beijing Roborock Technology stably ranks in the top three in 14 countries and regions overseas, with North America being one of its important destinations for overseas expansion. Will Beijing Roborock Technology be the first to be included in the tariff list under this round of additional tariffs? Will Beijing Roborock Technology's competitiveness in the North American market be affected after the imposition of tariffs?

The relevant person in charge of Beijing Roborock Technology stated that as the first Chinese robotic vacuum cleaner brand to enter the USA market, the company has established a good reputation and brand image among American users, and the company's products mainly occupy a significant advantage in the middle to high-end market segment, where users at this stage are relatively less price sensitive. It can be foreseen that the impact of tariffs on the sales volume of the company's products is limited.

According to previous reports, Beijing Roborock Technology is accelerating its synchronous layout online and offline in the North American market. In the North American market, Beijing Roborock Technology has entered platforms such as Amazon, HomeDepot, Target, Bestbuy, and Walmart, and opened official brand stores.

According to MIRROR data, in 2023, Beijing Roborock Technology's high-end product line, with a retail price of over $800, has achieved a market share of 57%, surpassing the established home appliance brand iRobot. In terms of offline channels, financial data shows that since Beijing Roborock Technology entered the USA retail market last year, in less than a year, it has expanded to over 1,400 Target stores and over 1,000 Best Buy stores, covering more than 700 cities in the USA. In the North American region, sales of 0.047 million units were achieved in the first half of this year, with a 20% year-on-year growth.

"On the one hand, there is the steady growth of the North American market, and on the other hand, there is the continuous rise of more emerging markets. The benefit of Beijing Roborock Technology's globalized operation is the ability to diversify operational risks well, ensuring the company can achieve healthy and sustainable overall growth," the responsible person stated.