IMPRO PRECISION (01286) saw its stock price plummet 6.48% in Monday's trading session following news of expanded U.S. tariffs that could significantly impact the company's operations. The sharp decline comes as investors react to the potential consequences of the U.S. Commerce Department's decision to broaden the scope of 50% tariffs on steel and aluminum imports.

According to an announcement from IMPRO PRECISION, the expanded tariffs, effective August 18, 2025, include 407 steel and aluminum derivative product codes. This development is particularly concerning for the company as approximately 40% of its products sold to the United States are under "Delivered Duty Paid" (DDP) terms, making IMPRO responsible for all applicable taxes and tariffs. More critically, about 60% of these DDP products fall under the new tariff schedule.

The situation poses a severe threat to IMPRO PRECISION's business model, as the additional tariffs exceed the company's gross margin rate. This makes the group's supply commercially unviable and may even constitute a force majeure event. With U.S. sales accounting for 44.4% of the group's total revenue in 2024, the impact could be substantial. While negotiations are ongoing regarding the possibility of passing these additional costs to customers, the Board of Directors acknowledges that these tariffs may significantly affect the group's business and operations, although the full extent of the impact remains uncertain at this time.