Core Viewpoint - The U.S. Department of Commerce announced an expansion of a 50% tariff on steel and aluminum imports from all countries, affecting 407 products, which will take effect on August 18, 2025. This could significantly impact the company's operations and profitability due to the high tariff rates compared to its gross margin [1]. Group 1 - The new tariff list includes 407 steel and aluminum derivative products, which will be subject to additional tariffs starting August 18, 2025 [1]. - Approximately 40% of the company's products sold to the U.S. are under "Delivered Duty Paid" terms, meaning the company is responsible for shipping, customs clearance, and paying all applicable taxes and tariffs [1]. - Of the products sold to the U.S., about 60% are included in the new tariff list, which could render the company's supply commercially unviable due to the high tariff rates [1]. Group 2 - As of the fiscal year ending December 31, 2024, revenue from U.S. sales accounts for approximately 44.4% of the company's total revenue [1]. - The board acknowledges that the additional tariffs may impact the company's business and operations, but specific assessments and calculations regarding the impact are currently not possible as negotiations to pass on the tariff costs to customers are ongoing [1].

Core Viewpoint - The U.S. Department of Commerce announced an expansion of a 50% tariff on steel and aluminum imports from all countries, affecting 407 products, which will take effect on August 18, 2025. This could significantly impact the company's operations and profitability due to the high tariff rates compared to its gross margin [1]. Group 1 - The new tariff list includes 407 steel and aluminum derivative products, which will be subject to additional tariffs starting August 18, 2025 [1]. - Approximately 40% of the company's products sold to the U.S. are under "Delivered Duty Paid" terms, meaning the company is responsible for shipping, customs clearance, and paying all applicable taxes and tariffs [1]. - Of the products sold to the U.S., about 60% are included in the new tariff list, which could render the company's supply commercially unviable due to the high tariff rates [1]. Group 2 - As of the fiscal year ending December 31, 2024, revenue from U.S. sales accounts for approximately 44.4% of the company's total revenue [1]. - The board acknowledges that the additional tariffs may impact the company's business and operations, but specific assessments and calculations regarding the impact are currently not possible as negotiations to pass on the tariff costs to customers are ongoing [1].

Group 1 - The U.S. Department of Commerce announced an expansion of a 50% tariff on steel and aluminum imports from all countries, effective August 18, 2025, which includes 407 products in the new tariff list [1] - Approximately 40% of the company's products sold to the U.S. are under Delivered Duty Paid terms, with about 60% of these products included in the new tariff list, making the business commercially unviable due to the high tariff rates exceeding the company's gross margin [1] - The company is currently negotiating with customers regarding the potential pass-through of the additional tariffs, and it is unable to assess the specific impact of these tariffs on its business and operations at this time [2] Group 2 - Sales to the U.S. accounted for approximately 44.4% of the company's total revenue for the fiscal year ending December 31, 2024 [2] - The board acknowledges that the additional tariffs may impact the company's business and operations, and it will continue to monitor the situation closely [2] - The company plans to take measures to mitigate the impact of the additional tariffs on its business and operations when appropriate [2]

Core Viewpoint - The ongoing trade negotiations between the United States and Japan are facing significant challenges, with Japan prioritizing the avoidance of increased tariffs on automobiles and other goods as the negotiation deadline approaches [1][2]. Group 1: Negotiation Dynamics - President Trump has expressed skepticism about reaching an agreement with Japan, suggesting the possibility of raising tariffs to 30%-35% if negotiations fail [1]. - Japan's government has been forced to retreat from its initial negotiating positions, focusing on preventing substantial tariff increases [1][2]. - The Japanese government has proposed a comprehensive plan to expand investment and economic cooperation with the U.S., seeking the removal of tariffs on automobiles and other sectors [2][3]. Group 2: Political Context - The upcoming Japanese Senate elections are influencing the negotiation dynamics, making it difficult for Japan to make concessions in sensitive areas like agriculture and automobiles [3]. - Prime Minister Shigeru Ishiba emphasized the importance of investment over tariffs, highlighting Japan's status as the largest foreign investor in the U.S. [2]. - There is a concern within the Japanese government that if negotiations do not progress while Trump is interested, they may be sidelined [4]. Group 3: Future Negotiation Plans - Japan's Economic and Fiscal Policy Minister has indicated that a visit to the U.S. may occur if deemed necessary, although no specific plans have been confirmed [3]. - The Japanese government is attempting to update its proposals to align with what it believes the U.S. may accept, but there is a lack of confidence in presenting further substantial proposals [2][3].

Group 1 - The U.S. Secretary of Commerce, Wilbur Ross, indicated that President Trump is seeking a compromise with Canada and Mexico regarding the 25% additional tariffs imposed on them, with a relief plan expected to be announced soon [1] - The USMCA (United States-Mexico-Canada Agreement) allows for tariff-free cross-border flow of auto parts and semi-finished products, which can be assembled into complete vehicles, potentially qualifying for relief under the new tariff regime [1] - Despite the implementation of the additional tariffs, the provisions of the USMCA remain valid, and discussions are ongoing with Canada and Mexico to find a resolution [1]