What LKQ Corporation told the SEC could break it.

LKQ imports aftermarket products and materials (notably from China and Taiwan), so U.S. tariffs and retaliatory measures directly raise its costs — in 2025 it was already taking pricing initiatives to recoup tariff costs, with a dilutive effect on gross margin.

“If significant tariffs or other restrictions are placed on products or materials we import or any related counter-measures are taken by countries to which we export products, our revenue and results of operations may be materially harmed.”

LKQ's recycling operations generate revenue from scrap and precious metals — platinum, palladium and rhodium recovered from catalytic converters and other recycled parts — exposing 'other revenue' to swings in PGM and scrap-metal prices.

“We are exposed to market risk related to price fluctuations in scrap metal and other metals (including precious metals, such as platinum, palladium, and rhodium, contained in some recycled parts).”

LKQ generates 54.4% of revenue outside the U.S., so a 10% move in the U.S. dollar against its functional currencies would change consolidated revenue by about 5.4%.

“Our operations outside of the U.S. represented 54.4% of our revenue during both years ended December 31, 2025 and 2024. An increase or decrease in the strength of the U.S. dollar against these currencies by 10% would result in a 5.4% change in our consolidated revenue.”

LKQ's North American aftermarket business depends on a relatively small number of suppliers, a large portion of whose products are sourced from Taiwan, concentrating supply in one geopolitically sensitive country.

“Our North American business is dependent on a relatively small number of suppliers of aftermarket products, a large portion of which are sourced from Taiwan.”