Fisher & Paykel Healthcare (FPH) expects its costs to increase under a new US tariff regime but doesn’t expect the move to have a material impact on its net profit in the current financial year.

The US announced a 25% tariff would be imposed on products imported from Mexico and Canada, and a 10% tariff on products imported from China with effect from this week.

About 45% of the respiratory products maker’s volume is made in Mexico and about 55% in New Zealand.

For the first half of the 2025 financial year about 43% of the company’s revenue came from the US.

About 60% of US volumes are supplied from the company’s Mexico manufacturing facilities.

“The company does not currently anticipate a material impact from the announced tariffs on its net profit after tax for the 2025 financial year,” FPH said in a market update this morning.

“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 said.

The company still expected to reach its gross margin target of 65% through improvement activities across the entire business, coupled with efficient growth into existing infrastructure.

“The US tariffs announced yesterday may have added two to three years to that expectation.”

FPH said it was working through 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 annual results at the end of May.

Managing director and CEO Lewis Gradon said the company took a long-term view and would work with global suppliers and US customers to provide solutions to best mitigate the impact of the tariffs on all parties.

“Fundamentally, our products and therapies are designed to improve care and outcomes for patients and to reduce the overall costs of providing healthcare,” the company added.

“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.”

FPH’s share price has come under some pressure as the threat of tariffs loomed.

The stock closed on Friday at $37.60, just off its peak, but still up 54% over the last 12 months.

Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.