Track how companies discuss tariffs and trade policies in their earnings calls, and understand their impact across different industries and regions.
In our US business, we source most of our food products from within the country. So, we're not expecting tariffs to have a material impact on our operating profit.
At this point, we don't believe that given our diversified supply chain, the tariffs will have effect on our hardware business.
we have low tariff exposure across our systems business as the majority of our finished goods are USMCA compliant and are therefore duty free on import into The United States from our Mexico based contract manufacturing facility.
Though none of us are enjoying the continually evolving tariff situation, it is yet another example of the nimble execution capabilities of our organization.
We foresee a headwind from the current tariffs here in the second quarter, but we expect we will have largely offset their impact on our 2025 results by the time we enter the second half of the year.
the gross margin was also impacted by new tariff expenses of approximately $650,000 in the quarter that were not reimbursed during the quarter.
It is too early to see signs of impact... we will remain disciplined around credit as we monitor the impact of the new tariff policies on our customers and our communities.
we'll also be thinking about potential tariff impacts when making bid decisions.
Clearly, in the quarter, we benefited in March from a pull-in effect as buyers accelerated their planned vehicle purchases to avoid the coming tariffs.
I don't expect tariffs to have a meaningful sort of overall impact on our capital expenditures.