IMPRO PRECISION (01286) announced that the U.S. Commerce Department, in a Federal Register notice issued on the evening of August 15, 2025, expanded the scope of 50% tariffs (additional tariffs) on steel and aluminum imports from all countries to the United States. The expansion includes 407 steel and aluminum derivative product codes under the Harmonized Tariff Schedule of the United States to the additional tariff list (new tariff schedule), with the expanded new tariff schedule taking effect on August 18, 2025.

According to the group's latest 12-month sales forecast, approximately 40% of products sold to the United States are sold to customers under "Delivered Duty Paid" (DDP) terms, meaning the group is responsible for arranging transportation and delivering goods to designated locations while completing customs clearance and paying all applicable taxes and tariffs. Among these products, approximately 60% fall under the new tariff schedule and are subject to additional tariffs.

Since the rate of these additional tariffs is significantly higher than the group's gross margin rate, the imposition of additional tariffs makes the group's supply commercially unviable and may even constitute a force majeure event.

For the year ended December 31, 2024, the group's revenue from sales to the United States accounted for approximately 44.4% of total group revenue.

As of the date of this announcement, the Board of Directors believes that the additional tariffs may impact the group's business and operations. However, as negotiations are still ongoing regarding passing the additional tariffs on to customers, the group is currently unable to make specific assessments and calculations of the potential impact the additional tariffs may have on the group.