Abbott expects a “few hundred million dollars” of impact from tariffs this year, CEO Robert Ford told investors on an earnings call earlier this month. Ford sought to assure investors that the company has strategies to mitigate the damage from President Donald Trump’s tariff strategy.
“Everything is pretty certain for us in terms of how we're executing and the expectations we have for products,” Ford said.
Abbott is maintaining its forecast for adjusted diluted earnings per share in 2025. Prior to the tariffs, the CEO added, Abbott considered raising its earnings forecast for 2025 because of the momentum the company saw in its base business.
The approach dovetails with healthcare giant Johnson & Johnson’s tariff assessment. J&J kept its earnings forecast Tuesday despite calling out a tariff charge of $400 million.
Medical device companies have been navigating back-and-forth tariff threats leading up to earnings readouts, with Trump raising tariffs on products from China to 145% and delaying other country-specific reciprocal tariffs for 90 days. China and other countries have imposed or threatened retaliatory tariffs.
Abbott did not provide a breakdown of the tariff costs, but said it is primarily looking at an impact in the U.S. and China. The company said it has laid out short-term mitigation plans, and it has 90 manufacturing sites around the world.
Abbott said it is on track to expand two new manufacturing and R&D sites in Illinois and Texas by the end of the year for its transfusion business, which makes devices to screen blood and plasma donations.
Ford emphasized the importance of a long-term tariff strategy, adding that it’s possible the levies could stay in place, looking back to the tariffs on China implemented during the first Trump administration.
“One thing we have learned from tariffs is they don't go away,” Ford said.
He added that the company is working with industry group AdvaMed for a tariff exemption for medical devices, but the company is not holding out hope.
“We're working through weekends to think about how we're going to do this on a long-term basis,” Ford said.
