Sleep device maker Resmed breathing easy on US tariffs
Sleep device maker Resmed claims it is exempt from US President Donald Trump’s new tariffs as it eyes expansion in the world’s biggest economy.
Unveiling its quarterly earnings on Thursday, Resmed told investment analysts it had confirmed its tariff-exempt status with US Customs and Border Protection officials this month.
Chief executive Mick Farrell said Resmed was “fully covered” under US duty exemptions for medical products dating back to Ronald Reagan’s administration in 1982.
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By continuing you agree to our Terms and Privacy Policy.Mr Farrell said Resmed had confirmed its duty free status is 2009 and again this month for its sleep devices and mask.
He said Resmed’s current position was boosted by it having factories in Australia and Singapore, both of which had good relationships with the US and were considered “friendly countries”.
He said it could be a different story for medical device companies that relied on factories in “hotbed” countries targeted by Mr Trump’s tariffs. “For those coming from Mexico and China, you will have to ask them,” he said.
Resmed is now based in San Diego, California, and is setting up a factory and research operations on the other side of Los Angeles in Calabasas. It is also expanding its major distribution centre in Georgia.
Medical and pharmaceutical companies have been scrambling to clarify whether they will continue to enjoy exemptions under a US duty free arrangement known as the Nairobi Protocol.
Mr Farrell, who is about to take over as president of US industry lobby group AdvaMed, said he did not want rivals to be hit by tariffs and advocated broad exemptions.
“I don’t need to beat competitors with a short-term advantage — I can beat them anyway,” he said.
Resmed is continuing to enjoy solid sales growth, with its revenue up 8 per cent to $US1.3 billion ($2b) in the March quarter and rising 10 per cent to $US3.8b for the first nine months of 2024-25.
Its net income was reportedly at the lower end of analyst expectations, despite rising 21 per cent to $US365 million for the March quarter. Its income over nine months was up 40 per cent to $US1.02b.
Mr Farrell said the revenue and earnings growth had been driven by “solid customer demand” for its products and software.
“We will continue to drive increased patient flow as we accelerate education and awareness outreach to physicians, providers, patients, and beyond,” he said.
