Donald Trump’s on-going trade war with China has impacted demand for sensors produced by a Fife firm.
China is one of the key markets for semiconductor specialists Semefab in Glenrothes.
The company produces sensors for the security, automotive, medical and industrial sectors.
Managing director Allan James said many Chinese firms were reducing their stocks as they feared the impact of increased tariffs.
“Trump’s trade war, his America first policy, has had serious repercussions to the Chinese supply chain who are fearful of tariff implications,” he said. “Stocks have been taken down to a lower level and unfortunately that’s rippled through to us.”
Mr James, who founded Semefab in 1986, said the trade war meant the firm failed to meet its ambitious growth targets last year. The vast majority of the firm’s sales are overseas, with just £1.5 million of the £12.2m turnover to UK customers.