What Vontier Corporation told the SEC could break it.

The April 2025 U.S. 10% baseline tariff plus country-specific and reciprocal tariffs raise Vontier's cost to import inventory (sourced from multiple countries) into the U.S.; it is managing exposure by optimizing its supply chain and reducing reliance on high-tariff countries.

“During April 2025, the United States announced a new baseline tariff of 10%, plus an additional country-specific tariff, on all imports into the United States. In response, certain countries announced reciprocal tariffs on imports from the United States. While the United States has reached trade agreements with certain countries, tariffs on imports from other countries and other reciprocal tariffs either remain in effect or have been temporarily paused, and as such, significant uncertainty around future tariff policies remains.”

For certain components requiring particular specifications or qualifications, Vontier relies on a single supplier or a limited number of suppliers; this sole/limited-source reliance has in the past caused, and could again cause, production interruptions, delays and inefficiencies.

“In addition, our reliance upon sole or limited sources of supply for certain materials, components and services has in the past, and could in the future, cause production interruptions, delays and inefficiencies.”

Vontier's manufacturing uses electronic components, steel, plastics/resins, cast iron, aluminum and copper, and oil & gas prices affect freight and utility costs; raw-material price movements pressure input costs.

“Materials Our manufacturing operations employ a wide variety of raw materials, including electronic components, steel, plastics and other resins, cast iron, aluminum and copper. Prices of oil and gas affect our costs for freight and utilities.”

About 31% of 2025 sales were to customers outside the U.S., with many manufacturing operations, suppliers and employees located abroad (≈15 of 25 significant facilities) and ~49% of cash held outside the U.S., exposing Vontier to international economic, political and supply-chain risks.

“In 2025, approximately 31% of our sales were derived from customers outside the U.S. In addition, many of our manufacturing operations, suppliers and employees are located outside the U.S.”