Update on U.S. reciprocal tariffs impact

Key points

• Reciprocal tariffs imposed by U.S. on imports
• USMCA-compliant goods from Canada and Mexico exempt from tariffs
• SMS's AEM avionics products remain tariff-free

Full summary

Structural Monitoring Systems Plc (ASX: SMN & SMNOA) has provided an update on the impact of the recently announced reciprocal tariffs by the United States Administration on imports from all countries. The Aerospace Industries Association of Canada (AIAC) has advised that USMCA-compliant goods from Canada and Mexico will continue to receive a 0% tariff rate, while non-compliant goods will be subject to a 25% tariff. Additionally, a 10% tariff will apply to non-USMCA compliant energy and potash imports from Canada. Following an initial review, SMS confirms that its wholly-owned AEM avionics products, which comply with the Canada-United States-Mexico Agreement (CUSMA/USMCA), continue to be tariff-free. Furthermore, orders placed prior to 2 April 2025 remain unaffected by the new tariff measures. SMS will continue to closely monitor the evolving trade environment and will provide further updates should any material impacts arise.