Company: PACB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001299130-25-000156
Chunk: 242

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 242
---
 certain other imports. Currently, this additional reciprocal tariff has been reduced to 10% through August 2025 pursuant to a trade deal reached between the U.S. and China; however, these tariff rates are currently under negotiation and are subject to further changes. Additionally, China also has imposed tariffs on imports into China from the U.S. These tariffs have and could continue to raise our costs. Furthermore, tariffs, trade restrictions, or trade barriers that have been, and may in the future be, placed on products such as ours by foreign governments, especially China, have raised, and could further raise, amounts paid for some or all of our products, which may result in the loss of customers and our business, and our financial condition and results of operations may be harmed. In February 2025, the Trump Administration also announced new 25% tariffs on imports from Canada and Mexico, which were temporarily suspended subject to further negotiations, and partially implemented with respect to goods not eligible for duty-free import under the U.S.-Mexico-Canada Agreement since March 2025; the U.S. government announced in July 2025 that these tariffs could increase to 35% for Canada and 30% for Mexico as of August 1, 2025. U.S. tariffs of 25% have also been implemented on a wider array of imported steel and aluminum items as of March 2025 (increased to 50% as of June 2025), on automobiles as of April 2025 and on automobile components as of May 2025. Additional reciprocal tariffs on a wide range of U.S. trading partners were briefly implemented in April 2025 but have since been temporarily suspended through August 2025. Additional tariffs may be forthcoming, including tariffs on items that have been the subject of recent U.S. executive orders and U.S. government tariff investigations, including (i) critical minerals and derivative products thereof (e.g., semiconductor wafers, semiconductors, and semiconductor manufacturing equipment) and (ii) pharmaceuticals and pharmaceutical products. Further tariffs may be imposed that could cover imports of additional components and materials used in our products and our business may be adversely impacted by these measures or by retaliatory trade measures taken by China, Canada, the EU, or other countries, including restricted access to components or materials used in our products or increased amounts that must be paid for our products, which could materially harm our business, financial condition, and results of operations. We may be unable to make changes in our supply chain quickly