CNH Industrial N.V.

Previous report

International trade developments or changes in national laws and policies can affect demand for our products and our competitive position. Government laws and policies on international trade and investment such as sanctions, import quotas, capital controls, tariffs or other retaliatory measures imposed in response to tariffs, whether adopted by non-governmental bodies, individual governments or addressed by regional trade blocks, may affect the demand for our products, technology and services, impact the competitive position of our products or prevent us from being able to sell products to certain customers or in certain countries. The U.S. has announced and/or implemented significant new tariffs, including but not limited to tariffs on imported steel and aluminum products, tariffs on imports from China, and baseline tariffs on most imports from most other countries. These measures have resulted in (or may cause in the future) counter tariffs and other retaliatory measures by other countries. Furthermore, restrictions in trade resulting from such measures, as well as the resulting impact on global trade and general economic conditions, could have an adverse effect on our business, results of operations and financial condition; could adversely impact the availability to us of certain products in certain countries and disrupt our supply chains, with related impacts to our operations; and could exacerbate inflation, diminish investment and result in broader negative impacts, including economic instability that may adversely impact demand for our products. In addition, to the extent we are unable to fully recover higher costs resulting from such measures, our margins and profitability could decline. We may be unable to increase prices concurrently with the implementation of new tariffs, which could result in a prolonged period before our prices align with the higher costs incurred from these tariffs. This delay in price adjustment may adversely affect our profit margins and overall financial performance. At this time, there is significant uncertainty on the impact of such measures on our products costs and our trade activities, or those of our customers or suppliers, and such impact may be subject to rapid change as a consequence of the introduction of new tariffs or retaliatory measures, or as a result of the impact of any resulting period of prolonged volatility or weakened economic conditions.