HECLA MINING CO/DE/

Tariffs, other import/export regulations, or trade disputes between the United States and other jurisdictions may have a negative effect on global economic conditions and on our business, financial results and financial condition.

Recently, the Trump Administration announced a 10% baseline tariff on multiple countries, including China, a country into which we sell our products. The Trump Administration then adopted additional, country-specific reciprocal tariffs. In response, China adopted retaliatory tariffs on goods imported from the U.S. On April 10, 2025, the Trump Administration suspended the country-specific reciprocal tariffs for a period of 90-days for all countries, except China, where the current applicable tariffs are 125%. Currently, we sell certain of our products into China (as well as Canada), and in the future may continue to do so. While the impacts of tariffs on us to date have been immaterial, the recently announced reciprocal Chinese tariffs might affect our products, and, in the absence of applicable exemptions (which were in place between 2018 and 2024), could have a material adverse impact on our business, financial condition, and results of operations. Further, any materials that we import to the U.S. from countries subject to tariffs could become more expensive if subject to a tariff, which could also have a material adverse impact on our business, financial condition, and results of operations.

On April 9, 2025, the Trump Administration issued Executive Order 14269, “Restoring America’s Maritime Dominance.” Among other things, this Order proposes the adoption of tariffs on maritime transport operators using Chinese- built vessels. We have significant sales of products that are shipped to Asia via oceangoing vessels that we source from maritime transport operators, and as a commodity producer, we have limited ability to pass on cost increases to our customers. If any of these tariffs were to be applied to vessels carrying our products, we could experience an increase in shipping charges, which could have a material adverse impact on our financial condition, and results of operations. As of the date of this report, we are not currently subject to any of these fees and believe there are exemptions potentially available when the tariffs go into effect.

In addition to possible impacts directly on our business, tariffs or other trade obstacles could have a material adverse effect on global economic conditions and the stability of global financial markets, and they may significantly reduce global trade, in particular, trade between China and the U.S. Any of these factors could depress economic activity, impact U.S. dollar/foreign currency exchange rates, restrict our access to customers and have a material adverse effect on our business, financial condition and results of operations.