Stocks Under $10 Affected by China Tariff News

Executive Summary

This report identifies stocks under $10 that have been negatively impacted by recent China tariff news. The analysis focuses on companies that manufacture products in China or have significant exposure to Chinese supply chains, with daily trading volumes of at least 500,000 shares. All stocks in this report have experienced price declines over the past month, coinciding with the escalation of tariffs between the US and China.

Recent Tariff Developments

In the past month, significant tariff increases have been implemented between the US and China:

• US tariffs on Chinese imports have increased to 125-245%
• China has raised its duties on US goods to 125% from 84%
• The US has eliminated the de minimis exemption for goods valued under $800
• The US has imposed new levies on Chinese ships docking at US ports

These tariff increases have created substantial disruptions across global supply chains, particularly affecting companies that manufacture products in China or rely heavily on Chinese components and materials.

Affected Sectors

The following sectors have been most impacted by the recent China tariffs:

1. Tech/Electronics: Heavy reliance on Chinese manufacturing and components; China processes 90% of the world’s rare earths needed for electronics
2. Retail/Apparel: More than 30% of clothing and footwear sold in the US is made in China
3. Automotive: Especially electric vehicles (EVs) that depend on Chinese-made components
4. Pharmaceuticals: China supplies key ingredients for many common medications
5. Clean Energy: China dominates solar panel production and rare earths needed for renewable energy

Qualifying Stocks

The following stocks meet all criteria (under $10, daily volume ≥ 500,000, fallen due to tariff news):

Technology Sector

Symbol	Name	Current Price	% Change (1M)	Avg Volume	P/E	Dividend Yield
NOK	Nokia Corporation	$5.11	-5.72%	19,962,635	14.6	2.73%
BB	BlackBerry Limited	$3.17	-28.12%	16,015,365	N/A	N/A
LUMN	Lumen Technologies	$3.29	-32.58%	14,891,961	N/A	N/A
CSIQ	Canadian Solar Inc.	$7.46	-23.72%	2,322,161	13.81	N/A
NOVA	Sunnova Energy	$0.18	-53.56%	18,861,204	N/A	N/A

Consumer Cyclical Sector

Symbol	Name	Current Price	% Change (1M)	Avg Volume	P/E	Dividend Yield
GES	Guess?, Inc.	$9.69	-20.51%	2,062,470	12.58	12.38%
F	Ford Motor Company	$9.63	-3.22%	158,313,083	6.60	7.79%

Industrials Sector

Symbol	Name	Current Price	% Change (1M)	Avg Volume	P/E	Dividend Yield
NKLA	Nikola Corporation	$0.11	-10.56%	1,463,117	N/A	N/A
BLNK	Blink Charging Co.	$0.69	-33.50%	3,444,348	N/A	N/A

Healthcare Sector

Symbol	Name	Current Price	% Change (1M)	Avg Volume	P/E	Dividend Yield
VTRS	Viatris Inc.	$7.56	-20.59%	16,513,883	N/A	6.35%
AMRX	Amneal Pharmaceuticals	$7.36	-14.62%	1,977,022	N/A	N/A
XERS	Xeris Biopharma Holdings	$4.11	-21.26%	3,830,422	N/A	N/A

Detailed Analysis

Technology Sector

Nokia Corporation (NOK)

• Current Price: $5.11
• Monthly Change: -5.72%
• China Exposure: Direct operations in China
• Impact: Nokia has significant manufacturing operations in China and relies on Chinese components for its telecommunications equipment. The company is vulnerable to supply chain disruptions and increased costs due to tariffs.

BlackBerry Limited (BB)

• Current Price: $3.17
• Monthly Change: -28.12%
• Impact: While BlackBerry has pivoted to software, it still relies on hardware partners with manufacturing in China. The tariffs affect its IoT and cybersecurity solutions that incorporate hardware components.

Lumen Technologies (LUMN)

• Current Price: $3.29
• Monthly Change: -32.58%
• Impact: As a telecommunications company, Lumen relies on network equipment that often includes Chinese-manufactured components. The tariffs increase costs for infrastructure expansion and upgrades.

Canadian Solar (CSIQ)

• Current Price: $7.46
• Monthly Change: -23.72%
• Impact: Canadian Solar has significant manufacturing operations in China and is directly affected by the tariffs on solar panels and components. The company faces higher costs for exports to the US market.

Sunnova Energy (NOVA)

• Current Price: $0.18
• Monthly Change: -53.56%
• Impact: As a solar energy provider, Sunnova relies heavily on solar panels and components manufactured in China. The tariffs significantly increase costs and reduce margins.

Consumer Cyclical Sector

Guess?, Inc. (GES)

• Current Price: $9.69
• Monthly Change: -20.51%
• Dividend Yield: 12.38%
• Impact: Guess sources a significant portion of its apparel from manufacturers in China. The tariffs directly increase costs and squeeze margins on imported clothing.

Ford Motor Company (F)

• Current Price: $9.63
• Monthly Change: -3.22%
• Dividend Yield: 7.79%
• Impact: Ford relies on Chinese suppliers for various components and has manufacturing partnerships in China. The tariffs affect its supply chain costs and global operations.

Industrials Sector

Nikola Corporation (NKLA)

• Current Price: $0.11
• Monthly Change: -10.56%
• Impact: Nikola sources components for its electric and hydrogen vehicles from global suppliers, including those in China. The tariffs increase costs for key components.

Blink Charging Co. (BLNK)

• Current Price: $0.69
• Monthly Change: -33.50%
• Impact: Blink’s EV charging equipment includes components manufactured in China. The tariffs directly increase costs and reduce margins.

Healthcare Sector

Viatris Inc. (VTRS)

• Current Price: $7.56
• Monthly Change: -20.59%
• Dividend Yield: 6.35%
• China Exposure: Direct operations in China
• Impact: Viatris has operations in China and sources pharmaceutical ingredients from Chinese suppliers. The tariffs affect its global supply chain and manufacturing costs.

Amneal Pharmaceuticals (AMRX)

• Current Price: $7.36
• Monthly Change: -14.62%
• Impact: Amneal relies on active pharmaceutical ingredients from China for many of its generic drugs. The tariffs increase costs and potentially disrupt supply chains.

Xeris Biopharma Holdings (XERS)

• Current Price: $4.11
• Monthly Change: -21.26%
• Impact: As a biopharmaceutical company, Xeris is affected by tariffs on pharmaceutical ingredients and manufacturing equipment from China.

Investment Considerations

Potential Opportunities

1. Dividend Yields: Several affected stocks offer attractive dividend yields, including GES (12.38%), F (7.79%), VTRS (6.35%), and NOK (2.73%).
2. Value Potential: Many of these stocks have fallen significantly and may present value opportunities if:
   • The companies can successfully adapt their supply chains
   • Trade tensions ease in the future
   • The market has overreacted to tariff news
3. Sector Diversification: The affected stocks span multiple sectors, allowing for diversification within a portfolio focused on tariff-impacted companies.

Risk Factors

1. Continued Trade Tensions: Further escalation of tariffs could cause additional price declines.
2. Supply Chain Disruptions: Companies may face challenges in relocating manufacturing or finding alternative suppliers.
3. Margin Pressure: Higher costs due to tariffs may not be fully passed on to consumers, resulting in compressed margins.
4. Consumer Spending: Economic uncertainty may lead to reduced consumer spending, particularly affecting retail and consumer discretionary stocks.

Conclusion

The recent China tariff increases have significantly impacted stocks across multiple sectors, creating both risks and potential opportunities for investors. The 12 stocks identified in this report have all experienced price declines coinciding with the tariff news and meet the criteria of being under $10 with daily trading volumes of at least 500,000 shares.

Investors should carefully consider both the risks and potential rewards of these stocks, taking into account their own investment objectives and risk tolerance. While these stocks have been negatively affected by tariffs in the short term, some may adapt successfully to the new trade environment or benefit from any future easing of trade tensions.