Dutch healthcare technology company Philips (PHG.AS), opens new tab slashed its estimated tariff impacton Tuesday after the United States and the European Union agreed a trade dealthat imposes a 15% rate on most goods imported from Europe. U.S. President Donald Trump had threatened to impose a 30% tariff on imports from the 27-nation EU bloc from August 1 in the absence of an agreement. Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here. The group, which sells products ranging from toothbrushes to medical imaging systems, said it expected an impact of 150 million to 200 million euros ($173 million to $232 million) from the tariffs this year, lower than the 250 million to 300 million euros it had previously estimated. Advertisement · Scroll to continue
Report This Ad Philips' Amsterdam-listed stock was the top performer on the pan-European STOXX index (.STOXX), opens new tab in early Tuesday trading, climbing 10% by 0930 GMT. The lines chart shows the year-to-date price evolution of the Philips stock and some of its peers. Philips CEO Roy Jakobs told reporters that the U.S.-EU deal provided clarity, but Philips would continue to ask for an exemption from tariffs and other trade barriers for the healthcare sector, including in the U.S. and in China. China announced earlier this month it was restricting government purchases of medical devices from the EU that exceed 45 million yuan ($6.27 million) in value, in retaliation against Brussels' own curbs imposed in June. "We have localized 90% of what we sell in China to manufacture in China, so this is not something of significance to us," Jakobs said, adding that the Chinese market was slowly recovering.
