ASX Companies Responding to Trump’s New U.S. Tariffs

In the wake of Donald Trump's recent implementation of sweeping U.S. tariffs, several ASX-listed companies have made market announcements addressing the potential impacts on their operations and bottom lines.

We keep track of the ASX-listed companies who have come up and flagged potential impacts and how they are navigating these new trade barriers.

Last Updated: 8th April 2024

• Cochlear (ASX: COH) confirms its products will maintain duty-free importation status in the U.S. under the Harmonized Tariff Schedule, which exempts hearing implants from newly announced tariffs. The company continues to monitor global trade developments to ensure ongoing service to recipients.

• Telix Pharmaceuticals (ASX: TLX) does not anticipate any material impact from the recently announced US trade tariffs. The radiopharmaceutical company maintains extensive US-based manufacturing and distribution infrastructure, with most of its workforce located in the United States. Additionally, pharmaceutical products are currently exempt from the reciprocal tariffs.

• Fisher & Paykel (ASX:FPH) announced that new U.S. tariffs (10% on New Zealand goods and 25% on non-compliant Mexican imports) won't materially impact FY2025 profits. With 43% of revenue from the U.S. and manufacturing split between Mexico (45%) and New Zealand (55%), the company anticipates higher costs for FY2026 but expects to maintain gross margin targets through operational improvements. CEO Lewis Gradon confirmed they can adjust production and will provide updated guidance in May.

• CSL (ASX: CSL) said that pharmaceutical products are exempt from the announced tariffs but is evaluating potential broader impacts and will continue monitoring future US government announcements.

• Breville Group (ASX:BRG) announced that new U.S. tariffs on foreign-manufactured products wouldn't materially impact its FY25 results, maintaining guidance of 5-10% EBIT growth. With 90% of its products manufactured in China and 45% of its sales in the U.S., Breville is already diversifying manufacturing to Mexico, Indonesia, and Cambodia. While FY26 input costs will likely increase due to tariffs, the company plans tactical adjustments to minimise short-term impacts while maintaining its long-term global growth strategy and manufacturing diversification plans.

• Cettire (ASX:CTT) says it is assessing the impact of new U.S. tariffs on E.U. imports. Approximately 41% of Cettire's H1-FY25 gross sales involved EU-manufactured goods sold to U.S. customers. The U.S. de minimis exemption remains unchanged, meaning shipments below US$800 continue to be duty-free. With Cettire's average order value at approximately US$514, many shipments will remain unaffected. The company notes these tariffs will impact most luxury retailers, as many luxury items are EU-manufactured. Cettire has been preparing mitigation strategies since 2024 and expects its geographic revenue diversification to continue as luxury brands potentially raise US prices to offset tariff impacts.

• Ansell (ASX:ANN) says it will fully offset new U.S. tariffs through pricing adjustments. With 43% of revenue from the US market, Ansell sources products from facilities across Malaysia, Sri Lanka, Thailand, Vietnam, and China, with no single country supplying more than 30% of US imports. The company has already begun customer discussions about pricing changes and notes that US manufacturing capacity for comparable PPE products is minimal. With 14 manufacturing plants across nine countries and an extensive partner network, Ansell maintains operational flexibility. The company is maintaining its FY25 Adjusted EPS guidance of US118¢ to US128¢.

• Treasury Wine Estates reports minimal impact expected from new US 10% tariffs on Australian/NZ imports. Only 15% of TWE's Americas division (which represents 36% of Group EBITS) comes from Australian/NZ wines, primarily imported as bulk wine and packaged in the US.

DISCLAIMER: Please note that the information provided in this newsletter is for educational purposes only and should not be considered financial advice. It is not intended to encourage you to buy/sell assets or make economic decisions. We strongly recommend conducting your own research before making any investment.