How has the 'tariff uncertainty' mentioned in NEGG's H1 2025 report specifically impacted its supply chain costs or sales?

In its H1 2025 report and related filings, Newegg Commerce, Inc. (NEGG) outlined both the potential and observed impacts of "tariff uncertainty" on its operations.

Specifically, the company noted the following:

• Sales Impact: Newegg's CEO, Anthony Chow, stated that the company "benefited from pull-forward spending due to tariff uncertainty" in the first half of 2025. This suggests that customers accelerated purchases in anticipation of potential price increases, leading to a positive impact on sales during that period.1
• Supply Chain Costs: While the company actively worked to "minimize tariff impact on supply chain and customer experience through close collaboration with our key partners and suppliers," the broader risk of increased costs was acknowledged.1 Earlier in 2025, Newegg had warned that rapidly changing tariffs, including significant increases on goods from China (which accounted for approximately 58% of their products in 2024), "could result in increased costs for goods imported into the U.S."2 These potential cost increases could necessitate higher prices for customers, potentially reducing demand, or, if prices are not raised, lead to lower profit margins.2 The CHIPS and Science Act was also identified as a factor that could increase costs and disrupt supply chains.2

In summary, while Newegg experienced a short-term boost in sales due to customers pulling forward purchases, the underlying uncertainty presented a risk of increased supply chain costs, which the company actively sought to mitigate.