GE HealthCare is expecting its 2025 revenues to take a hit of around $500m due to the Trump administration’s imposition of tariffs.
Consequently, the imaging giant has adjusted its full-year guidance for the rest of the year to factor in the estimated tariff impact.
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GE HealthCare has now put its earnings per share profit within the $3.90-$4.10 per share range, reflecting a tariff impact of around $0.85. Previous guidance fell in the $4.61-$4.75 range. Adjusted margin estimates, initially forecast at around 16.7%, have been revised down to 14.2% at the low end.
Trump’s tariffs have strongly targeted China, which produces and manufactures many raw materials critical to the medical device and pharma industries.
While the president has since stated that levies for goods imported from the country will “come down substantially” yet “won’t be zero”, they remain at 145% for now.
GE HealthCare’s vice president and CFO Jay Saccaro said: “We are expecting a total tariff impact for the year of around $500m for the year. The most significant of those are the bilateral China tariffs, amounting to about $375m.”
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By GlobalDataIn a call accompanying GE HealthCare’s financial report, the company revealed plans to offset the impact of tariffs by taking measures including decreasing imports between China and the US with multi-sourcing, utilising US duty drawback on re-exported goods, free trade zones, and bonded logistics, and actively driving material price decreases to offset tariff related inflation.
“Regarding the current global trade environment, we are actively driving mitigation actions,” said GE HealthCare president and CEO Peter Arduini.
“We continue to see strong customer demand in many of the markets we serve and are well-positioned to drive long-term value as we invest in future innovation.”
While tariff concerns and mitigations have stolen the limelight, GE HealthCare posted strong Q1 2025 revenues of $4.8bn, denoting a 3% increase on a year-over-year basis.
Other companies involved in the medical device space have also made strategic shifts to try and account for the financial hit Trump’s tariffs are liable to have, with Intuitive Surgical and Roche tempering their 2025 financial outlook.
Last month, portable oxygen concentrator developer Bellascura opted to scrap its 2025 guidance altogether due to uncertainty stoked by tariffs. Retractable Technologies is trimming its workforce by 7% amid the market uncertainty.
After Trump initially ratcheted levies on China to 20% in March, the latter banned the import of Illumina’s next-generation sequencing (NGS) sequencers in a retaliatory response.
As the trade war intensifies, Advanced Medical Technology Association (AdvaMed) CEO and president Scott Whitaker has repeated calls for the medtech industry to be exempt from Trump’s tariffs.
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