FMC CORP

Previous report

Trade policy, tariffs and countermeasures -The recent imposition by the United States of tariffs, sanctions or other restrictions on goods imported into the United States, and countermeasures imposed by foreign countries in response to such government actions could increase the cost of goods for our products or reduce our ability to sell products globally, which may adversely affect our operating results and financial condition. The ultimate impact of these trade measures on our business operations and financial results is uncertain and may be affected by various factors, including whether and when such trade measures are implemented, the timing when such measures may become effective, and the amount, scope, or nature of such trade measures, and our ability to execute strategies to mitigate the negative impacts.

Previous report

Additionally, the U.S. government has adopted new approaches to trade policy and in some cases, may renegotiate, or potentially abrogate, certain existing bilateral or multi-lateral trade agreements. The U.S. government has also imposed significant, additional tariff increases to capture other countries and types of foreign goods. Such current and future tariff increases, expanding tariffs to capture other countries and types of foreign goods or other changes in U.S. trade policy could make it more difficult or costly for us to procure necessary materials and equipment to conduct our business, and may adversely affect our operating results and financial condition.

Previous report

Existing duty reduction and deferral programs, such as free-trade agreements and duty drawback, provide beneficial impacts to our duties and tariffs for qualifying imports and exports, subject to compliance with each program’s unique requirements. Changes in laws or policies governing the terms of these duty reduction and deferral programs could have a material adverse effect on our business and financial results.

Previous report

In addition, in response to tariffs, other countries have implemented retaliatory tariffs on U.S. goods. We expect our net sales in foreign markets to continue to represent a substantial majority of our consolidated net sales. The imposition of retaliatory (or new) tariffs on the sale of U.S. goods into foreign countries could result in a reduction in our net sales in foreign markets, which may adversely affect our operating results and financial condition.

Previous report

Political tensions as a result of trade policies could reduce trade volume, investment, technological exchange, and other economic activities between major international economies, which may result in a material adverse effect on global economic conditions and the stability of global financial markets and, in turn, could have a material adverse impact on our business and financial condition.

Previous report

The following Risk Factor prospectively supersedes and replaces the Risk Factor with the same heading set forth on page 14 of our Form 10-K:

Previous report

Supply arrangements - Certain raw materials are critical to our production processes and our purchasing strategy and supply chain design are complex. Our supply chain and business operations could be disrupted from the temporary closure of third-party supplier and manufacturer facilities, interruptions in product supply or restrictions on the export or shipment of our products. We closely monitor raw material and supply chain costs. We source critical intermediates and finished products from a number of suppliers, largely outside of the U.S. and principally in China and India. There is considerable uncertainty surrounding the trade relationship between the U.S. and trading partners, as discussed elsewhere in these Risk Factors. Such changes may adversely impact our business. Further, while we have made supply arrangements to meet planned operating requirements, an inability to obtain the critical raw materials or operate under contract manufacturing arrangements would adversely impact our ability to produce certain products and could lead to operational disruption and increase uncertainties around business performance. An inability to obtain these products or execute under contract sourcing arrangements would adversely impact our ability to sell products. Any disruption of our suppliers and contract manufacturers could impact our sales and operating results. In recent years, we have seen some logistics challenges, pointed supply chain shortages, and increased cost of goods due to disruptions in energy markets (such as that caused by the Russian war on Ukraine), inflation and tariffs (such as those discussed above).