GE HealthCare Reports Q2 Sales Gain Amid Tariff Pressure

In 2025, U.S. trade policies under the Trump administration have significantly impacted various industries through dynamic tariffs and export controls, causing both challenges and strategic adaptations. GE HealthCare Technologies reported Q2 revenue and profit exceeding expectations, attributing growth to strong U.S. and EMEA demand and innovation pipelines, but faced margin pressure due to tariffs and product mix, with management actively working to mitigate tariff impacts and supply chain issues. Similarly, Watts Water surpassed revenue and profit forecasts, driven by organic growth and tariff mitigation efforts, though concerns about sustaining margin gains amid global economic uncertainties remain. The evolving and unpredictable tariff landscape, including measures like section 232 and 301 duties, has forced businesses to adopt tactical and strategic approaches such as duty drawbacks, Customs bonded warehouses, and new sourcing strategies to manage costs and supply chain risks. The U.S.-China trade war, intensified by the Trump administration’s export controls on AI and semiconductor technologies, has disrupted global supply chains, inflated costs, and spurred retaliatory tariffs, contributing to higher inflation and slower global economic growth. These developments highlight the complex interplay between trade policies, technological competition, and supply chain management in shaping the 2025 economic environment.