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Respiratory appliance manufacturer Fisher & Paykel Healthcare says a 25 percent tariff on Mexico-made goods to the United States will increase its costs.
Fisher & Paykel Healthcare manufactured about 45 percent of its volume in Mexico and 55 percent in New Zealand, with about 43 percent of its first half revenue from US-based customers.
It says about 60 percent of products sold to the US were supplied from the company's Mexico manufacturing facilities.
"For the 2026 financial year, the company's costs would likely increase due to the introduction of the new tariffs, acknowledging that the economic environment, global response to US tariffs and foreign currency movements may be fluid over this period.
"The company continued to expect to reach its gross margin target of 65 percent through its long-standing continuous improvement activities across the entire business, coupled with efficient growth into existing infrastructure," it said, expecting US tariffs announced last week may have added two to three years to that expectation.
"The company is currently working through the complexities associated with the imposition of the tariffs and will provide an update on outlook for the 2026 financial year as well as an updated estimate of the timeframe to return to the gross margin target, at its full year results at the end of May."
Managing director Lewis Gradon said F&P took a long-term view and would be working with global suppliers and US customers to mitigate the impact of the tariffs on all parties.
"Across the business we are continuing to make improvements that reduce costs or improve efficiencies.
"This proven combination is how we navigate all the various cost challenges that come our way over time."
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