Wallingford-based Amphenol is warning of the risks to its global operations posed by tariffs and other economic and political uncertainty.
The company — which makes electronic and fiber optic connection systems, antennas, sensors and coaxial and high-speed cable — said in its annual report filed with the U.S. Securities and Exchange Commission in February that it is exposed to political, economic, military and other factors beyond its control.
Amphenol says that during 2024, non-U.S. markets constituted approximately 65% of the company’s net sales, with China accounting for approximately 22% of those sales.
President Donald Trump last week announced an additional 34% tariff on all goods imported from China. That will raise the average tariff rate on Chinese imports to about 70%, according to the Wall Street Journal.
China responded by announcing plans to levy an additional 34% tariff on U.S. goods coming into its country.
Meanwhile, Amphenol disclosed it employs nearly 90% of its 125,000-employee workforce outside the United States, with many manufacturing, administrative and sales facilities elsewhere in the world.
“We cannot predict what additional actions may ultimately be taken by the U.S. or other governments with respect to tariffs or trade relations, what products may be subject to such actions … or what actions may be taken by the other countries in retaliation,” the annual report says.
“The imposition of additional tariffs or other trade barriers could increase our costs in certain markets and may cause our customers to find alternative sourcing or could make it more difficult for us to sell our products in some markets or to some customers, which may result in declines in our sales and operating income,” the report says.
Amphenol also notes the risks of a recession, the potential postponement of customer spending and uncertainties related to armed conflicts around the world as additional sources of potential financial headwinds.
Amphenol, which has been growing recently through acquisitions, reported a 21% increase in revenues in 2024, to $15.2 billion, and a 25% increase in profits to $2.4 billion, or $2.01 per share.
The company’s stock was down less than 1% in early morning trading on Monday to around $58.88. Its stock price at the close of last Tuesday, before President Trump announced his broad-based tariff plan on April 2, was $66.07.
