Track how companies discuss tariffs and trade policies in their earnings calls, and understand their impact across different industries and regions.
We saw about 190 basis points of inflation and tariff costs.
A combination of better industrial activity and protectionist policies from U.S. to Latin America have supported local metals production over imports.
It's another inflationary pressure. Obviously, we've been living in an environment where there's been some level of inflation, a little bit elevated over the last several years.
The direct impact on AIG is not material based on what we've seen to date, but we're not complacent.
We do want to provide some clarity around the lower tariff-related costs and just make a comment on that as well.
elevated supply levels in the live commodity market and import pressures persisted throughout the quarter, reducing margins and overall profitability compared to last year.
the rewiring of supply chains today continue to be rewired. And virtually every leg of that rewiring runs through our global energy franchise and through our contracts. And if you use just one particular example of many would be that Asian buyers right now are already lining up for alternative sources of fuels, refined products and LNG.
Adjusted gross margin in the quarter was just over 63%, down about 100 basis points from prior year, which is largely consistent with the year-over-year gross margin trends we saw last quarter and was driven mostly by the net impact of tariffs that were introduced last year.
We are seeing an increase in input costs as a result of new tariffs, fuel and raw material prices.
We did not book anything this quarter associated with IEPA tariffs, but we do believe that the recovery of those IEPA tariffs is possible in the future.