Tecnoglass Inc.

Current report

Our business operations and financial performance could be adversely affected by political or economic tensions between the governments of Colombia and its neighbor country Venezuela, and the United States, mostly influenced by differences in political orientation and policy priorities between the before mentioned country’s administrations. Given that our manufacturing is based in Colombia and 96% of our sales for the fiscal year ended December 31, 2024, occurred in the United States, any deterioration in diplomatic or economic relations between the countries, including the imposition of trade restrictions, tariffs, sanctions, limitations on cross-border payments, or other measures resulting from political disagreements between the President of Colombia Gustavo Petro, and the President of the United States Donald Trump, could negatively affect our ability to conduct business in the U.S., increase our costs, or restrict access to financial and commercial channels.

Current report

Although no “reciprocal” tariff initiative against Colombia is active as of the date of this report, there can be no assurance that such measures will not be introduced in the future. Any such developments could have a material adverse effect on our revenues, profitability, and overall business prospects.

Previous report

In March 2025, the U.S. government reinstated a 25% tariff on all steel imports and increased the aluminum tariff from 10% to 25% under Section 232 of the Trade Expansion Act, eliminating prior exemptions and expanding coverage to derivative products. Subsequently, in June 2025, these tariffs were doubled to 50% ad valorem. These measures significantly impacted our cost structure during the initial months of implementation. In response, we shifted a portion of our aluminum sourcing to U.S. suppliers to reduce exposure to the tariff and, consistent with broader market dynamics, adjusted our selling prices to partially offset the increased cost burden.

Previous report

On April 2, 2025, President Donald Trump declared a shift in U.S. trade policy, announcing “Tariff Liberation Day.” As part of this initiative, a universal 10% tariff was imposed on imports from all countries, including Colombia, effective April 5, 2025. Additionally, a second tier of higher “reciprocal” tariffs targeting countries deemed to have unfair trade practices was declared to go into effect on April 9, 2025. While Colombia was not explicitly named among those subject to elevated tariffs, the inclusion of Colombian exports under the universal tariff lead to increased uncertainty and cost pressures on our operations. As of June 30, 2025, the 10% universal tariff remains in effect.

Previous report

Although no “reciprocal” tariff initiative against Colombia is active as of the date of this report, this new tariff regime underscores the unpredictability of U.S. trade policy and its potential impact on companies with international manufacturing operations. Given that our manufacturing is based in Colombia and 96% of our sales for the fiscal year ended December 31, 2024, occurred in the United States, the imposition of even baseline tariffs could materially impact our production costs, supply chain efficiency, and price competitiveness.

Previous report

Continued trade volatility or further adverse policy developments could disrupt our operations, compress margins, or reduce demand from our U.S. customer base, any of which could have a material adverse effect on our business and financial results.