U.S. Government Section 232 – Announcement

June 1st 2018

Dear Valued Customer,

Re: U.S. Government Section 232 Investigation

 

Further to our previous correspondence on this subject and as you will now be aware, the tariffs imposedunder Section 232 of the Trade Expansion Act of 1962, relating to the imports of Steel & Aluminum Products were implemented at midnight on May 31st 2018.

To clarify, tariffs of 25% & 10% have been imposed on imported Steel & Aluminum Products respectively, which will now affect the price and availability of not only imported steel, but likely domestic producers as well. As a consequence of these actions under Section 232, we are unable to absorb a tariff of this scale, as such the increase to the cost of goods that have been impacted, will be passed to our customers. We will provide you with information relating to any price increase as we become aware of it.

While we pledge to work with all of you, our valued customers, to minimize any potential disruption of our joint business, we also wanted to take this opportunity to remind you that Howco is not liable to the BUYER for any delays, modifications, or cancellations occasioned or caused by implementation of these Section 232 findings. Any action that requires us to reschedule, modify, or cancel any performance under the terms of a purchase order and/or contract, we will provide you with prompt notice. Howco will keep you informed of any further developments relating to Section 232 in the future. We appreciate your understanding as we determine the ultimate impact of this event.

Should you have questions, please do not hesitate to contact nominated representative.

Yours Sincerely,

David Preston
Executive Vice President
Howco Group