Shares in GE HealthCare Technologies (GEHC +0.90%) were down 9.5% at 1 p.m. today. The decline follows the U.S.'s wide-scale implementation of tariffs. GE HealthCare is a truly global company, and the tariff actions will negatively impact its business.
GE HealthCare and tariffs
The company generated about $9 billion in revenue from North America in 2024, and $10.7 billion from the rest of the world (including $2.4 billion from China). It's a global company, competing with leading healthcare equipment companies like Siemens Healthineers and Philips Healthcare. With 53,000 employees around the globe (only 17,000 in the U.S.), including 7,000 in China, GE HealthCare is exposed to tariff actions in two ways.
NASDAQ: GEHC
Key Data Points
First, retaliatory tariff actions and trade conflicts will likely make its equipment less competitive internationally. Second, as acknowledged in the company's SEC 10-K filing, "tariffs, and any future tariffs, including on products from Mexico or Canada, by the United States or other countries, will likely result in additional costs to us."
Indeed, back in mid-February, GE HealthCare management incorporated the then-tariffs into its full-year guidance. For reference, tariffs on China were at 10% then. With the latest tariff update, they now stand at a whopping 54%, and given the dynamism of the situation, it's far from clear where they will be in the future.
Image source: Getty Images.
What's next for GE HealthCare?
The tariff actions are undoubtedly challenging for a company like GE HealthCare, which relies on ongoing demand from developed economies and extra growth from countries developing their healthcare provisions. Still, it's unclear whether these tariff actions will prove lasting, and in any case, tariffs could strengthen GE HealthCare's competitive positioning in its home U.S. market.
