“Starting with China, we do not expect a material impact based on actions taken since 2018.”

In context

“. The strategic alternatives process for safety and productivity is still underway and we will provide an update when appropriate. Now I want to spend a few moments to talk about tariffs. In 2018, the United States enacted Section 232 and Section 301 tariffs, primarily targeting exports from China. At that time, we acted immediately to use price and surcharges to protect profitability and we also embarked on a program to de risk our supply chain for raw materials, sub-assemblies and finished goods. The impact of those tariffs was de minimis due to our swift actions and ability to capture price. The current tariff situation is fluid, but based on our supply chain regionalization strategy, learnings from prior tariff responses and planned price actions, we feel very good about our position. Starting with China, we do not expect a material impact based on actions taken since 2018. Next, we expect the impact from Canada to also be de minimis as we do not have any material exposure there. Last, the situation in Mexico is evolving and we are prepared for a variety of scenarios. We are ready to implement price and surcharges to protect the P&L commitments of the company. And these assumptions are embedded in our guide. Please turn to Slide 4. Q1 once again showcased Emerson’s ability to consistently execute. Underlying orders were up 1% year-over-year, led by healthy processing hybrid markets, which were up low-single digits despite a difficult comp from the prior year, which benefited from the timing of mega project bookings. Orders growth was led by robust demand in the Middle East and strength in the U.S., both from MRO business and several project awards. We saw ex”