Donaldson Company, Inc. 10-Q filed Jun 2, 2026

Modified · Tariffs

The U.S. imposed tariffs on a wide range of imports, with the potential for further tariff actions, which resulted in retaliatory tariffs. These trade measures, along with updates to export controls and sanctions regimes, pose ongoing risks to global supply chains, potentially increasing the cost of goods, straining procurement cycles and impacting customer demand. On February 20, 2026, the United States Supreme Court issued a decision concluding that the International Emergency Economic Powers Act IEEPA does not provide authority for the President to impose tariffs. Certain tariffs that affected us were imposed under this statute pursuant to presidential executive order. On March 4, 2026, the Court of International Trade (CIT) ordered U.S. Customs and Border Protection (CBP) to begin the refund process for all importers who were subject to IEEPA duties. The extent situation continues to evolve, and further legislative, regulatory, or judicial developments may affect the ultimate outcome and the availability or timing of any potential recoveriesrefunds. As of tariffs previously paid remain subject to further legal interpretation and administrative processesApril 30, 2026, we did not record an asset related to the potential refund. We will continue to monitor evaluate new developments and will evaluate the effect of the ruling on future reporting periods as additional information becomes available. The Company is would record a potential refund under a loss recovery model pursuant to ASC 410-30 if the requirements are met. We are closely monitoring the evolving trade landscape, as well as itsour ability to mitigate the impact of tariffs and itsour analysis of the potential impact. The Company We will continue to utilize itsour global manufacturing footprint and supply chain to mitigate the cost impact of tariffs.