EROAD Limited

Kalkine’s Global Tariff Report delivers objective, data-driven insights into key global sectors impacted by tariff fluctuations. It assesses how these changes influence equity valuations across affected industries, with a focus on trade-sensitive sectors that often attract increased investor attention during times of tariff-related uncertainty. The report also highlights defensive and countercyclical segments that tend to show resilience—or even outperformance—amid disruptions in global trade dynamics.

As illustrated in the table below, several key sectors in different countries are directly impacted by the recent tariff announcement from President Trump.

Key Highlights 

Latest Key Developments (as of 6 October 2025) 

1. Baseline Tariffs: A 10% minimum tariff applies to most countries, while about 40 nations with which the U.S. runs trade deficits face a 15% base rate. 

2. High Tariff Targets – On August 27, 2025, the US imposed an additional 25% tariff on Indian goods, raising total duties to 50% on USD 48.2 billion of exports, citing India’s Russian oil imports, while India seeks closer regional ties and strategic autonomy.

3. Canada & Switzerland: Canada is hit with 35% tariffs on non-USMCA-compliant goods, citing poor cooperation on fentanyl control. Switzerland faces a 39% tariff, triggering emergency trade talks.

4. China & Pharmaceuticals: On August 11, the U.S. extended its tariff truce with China for another 90 days, delaying a potential increase to the previously threatened ~145% level. Until November 10, 2025, Chinese goods will continue to face a temporary ~30% tariff, instead of the steep hike. A 200% tariff on pharmaceuticals has been threatened but not enacted.

5. Industry-Specific Tariffs: Steel, aluminum, and copper imports face 50% tariffs; cars and parts are taxed at 25%. As of August 21, the U.S. and European Union finalized a Tariff Framework Agreement capping total tariffs (including MFN, reciprocal, and Section 232 duties) at approximately 15% on most EU-origin goods. Key sectors such as autos, semiconductors, pharmaceuticals, and lumber are covered under this cap. However, a 27.5% tariff on European cars and parts will remain in place until the EU enacts reciprocal tariff reductions on U.S. goods.

6. Major Trade Deals: The EU locked in a 15% tariff rate through a deal involving USD 750 billion in U.S. energy purchases and USD 600 billion in investments by 2028. Japan secured the same rate with a USD 550 billion U.S. investment commitment.

7. Tariff Rates for Key Partners: The UK, South Korea, Vietnam, Indonesia, and the Philippines negotiated tariff rates between 10% and 20%. Mexico received a 90-day delay on new tariffs but still faces a 25% rate on non-USMCA goods.

8. De Minimis Exemption Removed: As of July 30, 2025, Trump ended the global tariff exemption for shipments under USD 800, significantly affecting low-cost importers like Shein and Temu.

Key Highlights of the Proclamation on Wood Product Tariffs

• Tariff Implementation: President Donald J. Trump invoked Section 232 of the Trade Expansion Act of 1962 on 29 September 2025, imposing tariffs on timber, lumber, and related wood products to strengthen U.S. industry and safeguard national security.

• Tariff Details: A 10% global tariff applies to softwood lumber; certain upholstered furniture faces a 25% tariff (rising to 30% on January 1); and kitchen cabinets and vanities face a 25% tariff (rising to 50% on January 1).

• Trade Partner Considerations: Nations negotiating with the U.S. may secure alternative arrangements to avoid upcoming tariff hikes. The U.K., EU, and Japan will receive preferential treatment — tariffs capped at 10% for the U.K. and 15% (combined with MFN rates) for the EU and Japan.

• Additional Provisions: Products not covered by Section 232 tariffs will generally face reciprocal tariffs. Items under the Potential Tariff Adjustments for Aligned Partners (PTAAP) list remain unaffected unless subject to antidumping or countervailing duties. 

Global Implications of Tariffs

Australia’s external sector data for mid-2025 reflected mixed trends. The balance of trade narrowed sharply to AUD 1,825 million in August 2025 from AUD 6,612 million previously, as exports fell to AUD 41,858 million while imports rose to AUD 40,033 million. The current account deficit eased slightly to AUD 13,654 million in June 2025. External debt stood at AUD 2.68 trillion, while the terms of trade index weakened to 114 from 119, indicating softer export prices. Capital inflows increased to AUD 17,669 million, supported by higher foreign direct investment, which surged to AUD 81 billion in December 2024. Meanwhile, tourist arrivals rose to 743,210 in July 2025, signaling continued recovery in travel activity.

Amid the US's 10% baseline tariffs on Australian exports (effective April 2025) and steeper duties on key suppliers like China (34%) and Vietnam (46%), Australia's AUD 167 billion technology sector—encompassing semiconductors, software, cybersecurity, and digital services—stands out as a resilient investment hub. Far from being deterred, these trade frictions are amplifying Australia's appeal through strategic advantages, policy tailwinds, and diversification plays. Below are several key reasons why technology sector remains attractive despite U.S. tariff concerns:

Amid elevated Market Volatility and Tariff pressures, EROAD Limited (ASX: ERD) stands out as a defensive pick within the technology sector, supported by rigorous fundamental and technical research

Section 1: Company Overview and Fundamentals Insights

Company Overview: EROAD Limited (ASX: ERD) is a technology-driven provider of tolling and fleet management solutions for the transport industry. It offers electronic on-board units and SaaS-based platforms across New Zealand, Australia, and North America. Kalkine’s Global Tariff Report covers the Investment Highlights, Key Financial Metrics, Risks, and Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

1.2 The Key Positives, Negatives, Investment Highlights, and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~52.41% of the total shareholding. Australian Ethical Investment Ltd., and Regal Funds Management Pty. Ltd. hold maximum stakes of 12.90% and 12.44%, respectively. 

1.4 Key Metrics: ERD’s debt-to-equity decreased to 0.09x in FY25 compared to 0.13x in FY24. Below is captured other metrics:

Section 2: Business Updates, Financial and Operational Highlights

2.1 Recent Business Updates:

2.2 FY25 Results Highlights (for the 12 months ended 31 March 2025): Below mentioned are some key financial highlights:  

2.3 Historical Financial Trend

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

The stock has decreased by ~3.06% in the last one month, and over the past three months, stock has increased by ~65.67%. The stock has a 52-week low and 52-week high of AUD 0.725 and AUD 2.630, respectively, and is currently trading above the 52-week high-low average.

4.2 Fundamental Valuation and Stock Recommendation

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance. 

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 06 October 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above. 

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.