Tariff Surcharge

April 2, 2025

On March 5 we communicated the need to implement price surcharges given the announcement of (unprecedented) tariffs by the Trump Administration. As you know, additional tariffs were announced on April 2. With the support of advisors, we are working diligently to understand the on-the-ground implications of the additional tariffs, and to understand the net impact against what was already announced earlier. We will advise as soon as possible whether we need to adjust already enacted surcharges and whether this may again imply the need for updated quotes or otherwise. As of now, there are no further changes.

March 5, 2025

Dear Valued Dealer,

Due to the unprecedented and as of yesterday the real introduction of tariffs in Canada and Mexico, as well as other tariffs and tariff increases (e.g., aluminum and steel globally, all China imports), we must implement tariff surcharges across all of our product lines. We do not do this lightly, but we simply have no economic option. We trust that you and your customers/end-customers, while not liking it, understand the current highly disruptive regulatory context.

Recognizing the disruption this can and will cause our mutual businesses, for Mecho Masterfiles and for SWFcontract FSORs created on or before March 4, 2025, we will honor - at a very significant cost to Mecho/SWFcontract - pricing for:

All projects where the order has already begun in terms of ordered or partially ordered product as of March 4, 2025; we intend to hold the pricing throughout the project.
On projects that have not yet begun (i.e., no order/partial order as of March 4, 2025), we will honor existing pricing for 180 days from the actual date that the Masterfile/FSOR was created, at which time it will be subject to re-quote for the balance of any orders.

We must at the same time do a re-price for all outstanding quotes: for any quote that has not been received as an order on or before March 10, 2025, it will be subject to a re-quote beginning on March 11, 2025. For Mecho proposals, we anticipate a peak-level of quote activity beginning on Tuesday and ask that you recognize we will do all possible to accommodate the needs of our dealers (through overtime hours, etc.) - for projects that have an extremely short lead time to award, please alert the estimating team. For SWFc portal quotes and Mecho pricebook quotes, dealers should re-price them on or after March 11, 2025.

Again, this is a price surcharge approach, and we genuinely hope that depending on how tariffs evolve over the coming months, that we are in a position to reduce the surcharges, if not eliminate them – we can only monitor this closely moving forward. In addition, we are reviewing all other non-surcharge options to mitigate the tariff impact.

We understand that pricing adjustments impact your business, and we want to ensure that you have the information needed to plan accordingly - if you have any questions, please reach out to your sales representative or RSD.

Thank you for your business and continued support in this volatile time.

Regards,
SWFcontract Leadership Team