Chinese firms sailing to Indonesia have limited impact from tariffs

Chinese company Kairun is mainly engaged in the research and development, design, production and sales of leisure bags, suitcases and other products, and its business model is divided into OEM manufacturing and brand management.In 2024, the company's sales revenue in the U.S. market accounted for about 15%, and most of them are OEM manufacturing business. Products sold to the U.S. are mainly produced by Indonesia manufacturing base, in Southeast Asia and South Asia, Indonesia by the U.S. "reciprocal tariffs" is the lowest, only 32%, by the tariff impact is relatively minimal, in the long term still have an advantage. OEM manufacturing business and customers mainly use FOB mode of trading, freight and tariffs after shipment of goods on board the ship is borne by the customer, the U.S. tariffs will not directly increase the company's costs. Comprehensively the company's U.S. revenue share, production capacity layout, cooperation mode and other factors, the U.S. tariff increase has limited impact on the enterprise as a whole.