US healthcare giant Johnson & Johnson expects to incur around $400 million in tariff-related costs this year, primarily affecting its medical technology unit. The company’s CFO stated that tariffs on China and aluminum are the main contributors to these costs.
The impact will also be felt from retaliatory tariffs imposed by China against US goods, as well as taxes on steel and key trading partners Canada and Mexico. However, contractual agreements limit the company’s ability to pass price increases to customers.
The cost estimate does not include potential tariffs on pharmaceuticals imports, which could lead to supply chain issues and shortages. CEO Joaquin Duato emphasized that tax policy is a better way to boost US manufacturing, rather than tariffs.
In addition, Johnson & Johnson plans to invest over $55 billion in the next four years to manufacture its advanced medicines domestically.
Source: https://apnews.com/article/johnson-tariffs-medical-devices-pharmaceuticals-103d0074599788cf6f3ceee93269c3d2