Lifeward Ltd.

Current report

ITEM 1A. RISK FACTORS

Current report

Our business may be materially adversely affected by the imposition of tariffs and other trade barriers and retaliatory countermeasures implemented by the United States and other governments.

Current report

The U.S. has announced and/or implemented significant new tariffs on imports from a wide range of countries, which has prompted retaliatory tariffs by a number of countries and a cycle of retaliatory tariffs by both the U.S. and other countries. In early April 2025, actions were taken by the U.S. and certain other countries to delay the effective date of certain of these tariffs, but as of the date of this report a number of new tariffs remain in effect, including up to 145%, 10% and 17% tariff on imports from China, Taiwan and Israel, respectively. We currently rely on foreign third-party manufacturers, and parts suppliers, including those in China, Taiwan and Israel. As a result, such tariffs may require us to implement surcharges and/or increase the price of certain of our products, which may adversely impact demand for our products and our competitive positioning. In addition, whenever we are unable to fully recover higher costs, or whenever there is a time delay between the increase in costs and our ability to recover these costs, our margins and profitability can decline.

Current report

Countries may also adopt other measures, such as controls on imports or exports of goods that could adversely impact our operations and supply chain and limit our ability to offer our products and services as designed. These measures may require us to take various actions, including changing suppliers and restructuring business relationships. Changing our operations in accordance with new or changed trade restrictions can be expensive, time-consuming, disruptive to our operations and distracting to management. Such restrictions have been, and in the future may be announced, amended, paused, reinstated or rescinded with little or no advance notice, and we may not be able to mitigate all adverse impacts from such measures, effectively. The U.S. may implement additional tariffs and other measures, further retaliatory tariffs and other retaliatory actions may follow and the risks and adverse effects noted above may increase. The extent and duration of any tariffs and the resulting impact on general economic conditions and on our business are highly uncertain, subject to rapid change and depend on various factors, such as negotiations between the United States and other countries, the response of such countries, exemptions or exclusions that may be granted, availability and cost of alternative sources of supply, and demand for our products in affected markets.

Previous report

RISK FACTORS