Track how companies discuss tariffs and trade policies in their earnings calls, and understand their impact across different industries and regions.
We keep tracking it very, very closely. But as we look across all the different end markets that we're addressing, we really haven't seen any significant impact.
Obviously, we're not directly impacted by tariffs as a software company. But some of our customers still are struggling with the same things that you're hearing about pricing pressures and some of the things that are associated with higher cost of goods for some of their products.
Tariffs for most countries are higher now than when we last discussed earnings guidance on our Q1 call in May.
The impact during the quarter was basically in line with our expectations and was not material to our Q2 financial results.
tariffs and especially sector-specific tariffs, create business uncertainty and economic distortions with significant impacts to the most exposed sectors.
We made meaningful progress in the quarter with our mitigation actions, which included accelerating our supply chain to optimize driving cost reduction and taking pricing actions.
Our incremental tariff rate has doubled since our last earnings call.
We continue to offset additional tariff costs across the second half.
However, the constructive environment for market-related revenue continues to be tempered by geopolitical risks and the uncertainty around trade policy particularly China's levy against Canada's canola exports.
Unfortunately, tariff rates have gone above 10%, and we have to react to that. And we now have a net 25¢ impact which is largely coming through our coffee portfolio.