Johnson & Johnson Anticipates $400 Million Tariff Costs

Johnson & Johnson is anticipating a $400 million impact from escalating tariffs, mainly affecting its medical technology division, as revealed during a recent earnings call. CEO Joaquin Duato emphasized the potential for supply chain disruptions and drug shortages if tariffs on pharmaceuticals are enacted, advocating instead for tax incentives to bolster domestic manufacturing. The company has committed to investing over $55 billion in U.S.-based pharmaceutical production over the next four years, despite the financial strain from tariffs. CFO Joseph Wolk detailed that the tariff-related costs stem from duties on products exported to China, as well as tariffs on raw materials like steel and aluminum, and those imposed on Canada and Mexico. Despite these challenges, Johnson & Johnson has raised its 2025 sales forecast by $700 million, buoyed by a recent acquisition in neuroscience. The company remains optimistic about navigating the trade tensions while continuing to expand its operations.