• Refurbished products exempt from tariffs under T-MEC Trade Agreement
• Components and packaging from USA used in Mexico refurbishment exempt from tariffs
• Increased demand for less expensive recycled products expected to offset any negative tariff impact

Close the Loop Limited ('Close the Loop' or the 'Company') (ASX: CLG), the circular economy industry leader, notes the favourable impact on the Company from changed tariffs imposed by the US government on imports to the USA and tariffs imposed by other countries on the goods exported from the USA. The new tariffs will likely make new laptops, printers, computing and gaming accessories more expensive globally, and is therefore likely to increase demand for certified refurbished products and likely to be broadly positive for the ITAD sector and Close the Loop. In terms of these new tariffs, the Company notes potential impact on its Mexicali facility, where laptops, printers, computing and gaming accessories that cross the US / Mexico border in either direction to be refurbished are exempt from tariffs under the T-MEC Trade Agreement. Components and packaging made in the USA and used in the refurbishment process in Mexico will also be exempt from tariffs. For the Company's Texas / Kentucky facilities, goods sold by OEMs in the USA, even if originally manufactured outside of the USA, can be refurbished at the facilities within the USA and are unaffected by tariffs. However, any products, components, packaging or raw materials imported into the USA and used in the refurbishing of products within the USA will now attract a higher tariff, and the Company is reviewing the total cost of goods brought into the USA. Broadly, the Company expects the increased demand for less expensive recycled product will strongly outweigh any negative impact of tariffs paid.