Dow Inc

ITEM 1A. RISK FACTORS

Since December 31, 2024, there have been no material changes to the Company's Risk Factors, except as noted below, which was updated in the first and second quarters of 2025:

Global Economic Considerations: The Company operates in a global, competitive environment which gives rise to operating and market risk exposure.

The Company sells its broad range of products and services in a competitive, global environment, and competes worldwide for sales on the basis of product quality, price, technology and customer service. Increased levels of competition could result in lower prices or lower sales volume, which could have a negative impact on the Companys results of operations. Sales of the Company's products are also subject to extensive federal, state, local and foreign laws and regulations; trade agreements; import and export controls; taxes; and duties and tariffs. The imposition of additional regulations, controls, taxes, duties and tariffs or changes to bilateral and regional trade agreements could result in lower sales volume, which could negatively impact the Companys results of operations.

In the first quarter of early 2025, the United States imposed tariffs on specmade signific goods imported from certain traant changes to its long-standing partners and suggested the potential for additional widespread tariffs in the near term. Subsequently, on April 2, 2025, the United States announced netrade policies and announced significant new tariffs on virtually all imported goods, with the exception of goods imported from Canada and Mexico certain goods that are compliant with the United States-Mexico-Canada Agreement, a trade agreement which became effective in 2020. On April 9, 2025, tThe United States subsequently announced that a significant pora reduction of the new tariffs, with certain exception ofs, as its new retalgotiatory tariffs for most countries, withes trade agreements. However, the resulting average U.S. tariff rate rose to the exception of China, would be paushighest level since the 1930s. In July 2025, the United and most othStates announced it will impose higher tariffs lowered to 10 percent for 90 days. These acti rates, effective August 1, 2025, on imports from certain specified trading partners where trade negotiations are impacting bilateral trade relahave not satisfactorily progressed. In response to these actions, with manycertain U.S. trading partners imposinged or are publicly considering retaliatory tariffs on U.S. imports. Global trade policies are rapidly evolving, with frequent changes to Shifts in tariffs, import/export restrictions, trade sanctions, sector specific trade barriers, and other governmental trade actions, whethe plannr enacted effective dby the United States of announced tariffsr other countries, and the associated uncertainty regarding their enforcement and duration, resulting in global financial marketof long-term trade policies, could impact the Company's sales volatility. In addiume, sales price, and production, the United States ha and other costs. Changes initiated federal investigati trade policies may also cause disruptions on certain materials anto material sourcing and availability, global supply chains and logistics of trade which could impact supplyand access to end markets. Additionally, chain operations, availability of materials and other costs. Tnges in U.S. trade policy may create shifts in global market dynamics, disrupt the United States is also considering sector specific safeguard investigations which could further disrupt supplylong-term planning process for governments and private enterprises and result in continued global financial market volatility. The impact of these chain operations. Tariffs,nges in trade policies and other government actions, includ resulting retaliatory measures, ctrade and market uncertainty could have a negative impact on the Companys results of operations.

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Economic conditions around the world, and in certain industries and geographic regions in which the Company does business, also impact sales price and volume and affect tthe efficacy of the Company's supply chain. For example, mlong-term market uncertainty, and an  economic downturn driven by intrade policies and inflationary pressures, and higher input costs and margin compression have reduced demand for the Company's products, resulting in decreased sales price and volume in recent years which hasve yet to fully recover. Adverse economic conditions ahave also caused supply chain constraints. These factors have had a negative impact on the Company's results of operations. Additionally, political tensions; war, including the ongoing conflicts in the Middle East and between Russia and Ukraine with the related sanctions and

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export restrictions; terrorism; epidemics; pandemics; or political instability in the geographic regions or industries in which the Company sells its products could alsofurther reduce demand for the Company's products and result in decreased sales price and volume or supply chain disruptions, which could have a negative impact on the Companys results of operations.

The United States, Canada, the European Union and other countries imposed economic sanctions on Russia in response to its February 2022 invasion of Ukraine. As a result, Dow suspended purchases of feedstocks and energy from Russia and stopped all investments in Russia. Additionally, Dow reduced its product offerings and is currently supplying Russia with only limited non-sanctioned goods. These actions have not had and are not expected to have a material impact on the Company's financial condition or results of operations. However, the fluidity and continuation of the conflict may result in additional economic sanctions and other impacts which could have a negative impact on the Companys financial condition, results of operations and cash flows. These include decreased sales; supply chain and logistics disruptions; volatility in foreign exchange rates and interest rates; inflationary pressures on and availability of raw materials and energy, most notably in Europe; and heightened cybersecurity threats. Further, the intensity and duration of conflicts in the Middle East and potential expansion of hostilities in the region are difficult to predict and could disrupt the Company's supply chain operations, which could have a negative impact on the Company's results of operations.

In addition, volatility and disruption of financial markets could limit the ability of Dow's customers and suppliers to obtain adequate financing to maintain operations, which could result in a decrease in sales volume and have a negative impact on the Companys results of operations. The Companys global business operations also give rise to market risk exposure related to changes in inflation, foreign currency exchange rates, including the impact of foreign currency exchange rates resulting from highly inflationary economies such as Argentina, interest rates, commodity prices and other market factors such as equity prices. To manage such risks, the Company enters into hedging and other investment transactions, where deemed appropriate, pursuant to established guidelines and policies. If the Company fails to effectively manage such risks, it could have a negative impact on its results of operations.