This week, US President Trump's tariff deadline is set to expire.
After the 'Liberation Day' stock market crash, Trump placed a 90-day pause on tariffs to allow trading partners to reach deals with the United States.
Unless agreements are reached before 9 July, reciprocal tariffs of up to 50% will be reinstated.
Back in April, the S&P/ASX 200 Index (ASX: XJO) reacted negatively when Trump first unveiled his tariffs. However, some companies fared worse than others.
As the 9 July deadline looms, investors will be keeping a close eye on certain ASX 200 companies that could be affected by any deals reached (or not reached).
Which are they?
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Keep an eye on these 3 ASX 200 stocks
On April, 3 ASX 200 with heavy tariff exposure companies fell sharply when investors discovered their fate.
These were Breville Group Ltd (ASX: BRG), Lovisa Holdings Ltd (ASX: LOV), and Ansell Ltd (ASX: ANN).
Breville manufactures 90% of its products (by value) in China and sells 45% of its products into the US.
Meanwhile, Lovisa's products are primarily sourced from China, with the United States having been a rapidly growing market for Lovisa in recent years.
Ansell manufactures its products in nine countries, the largest being Malaysia and Sri Lanka. In FY24, nearly half of its 42% of revenue was generated in the US. In an April research note, Macquarie described Ansell as the "most exposed" to tariffs in its coverage universe.
The ongoing negotiations between China and the US have been widely publicised. On 28 June, Reuters reported that the two nations had reached an agreement to deescalate trade tensions. However, the finer details remain unknown.
Earlier this month, President Trump announced it had set Vietnam's tariff rate at 20% (Vietnam had previously faced a tariff rate as high as 46%).
According to Bloomberg, this gives Vietnam a clear regional advantage over rivals.
China appeared to agree, voicing opposition to that deal. This could complicate the final outcome between the United States and China, and affect the tariff rate applied to Breville and Lovisa.
Indirect consequences
Companies facing steep tariffs may also look at moving their manufacturing hubs to other countries.
Back in April, iPhone maker Apple Inc (NASDAQ: AAPL) announced its intention to move a significant portion of its iPhone manufacturing from China to India by the end of 2026. This announcement sparked backlash from US President Trump, who even floated the idea of placing a company specific tariff on Apple as a deterrence mechanism.
The situation remains complicated. This week could prove to be a particularly dramatic week on the tariff front.
