Impro Precision Industries (HKG:1286) said that the impact of recently imposed US tariffs has proven less extensive than initially anticipated, according to a Tuesday Hong Kong bourse filing.

The machine components maker said most of its US customers have agreed to absorb all or a significant portion of the additional tariffs.

It added that some product codes previously included in the new tariff list have been confirmed exempt, as they contain no steel or aluminum.

The update follows a statement last month, in which Impro Precision warned that Washington's expansion of a 50% tariff on steel and aluminum products to over 400 additional items, including many of its exports, would likely impact its business.

At the time, the company said the move risked making it "commercially impracticable" to continue supplying on existing terms.

The US accounted for over 44% of its revenue for the year ended Dec. 31, 2024.