Company: GEHC
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001932393-25-000014
Chunk: 84

Company: GE HealthCare Technologies Inc.
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 1
Chunk 84
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 than a full quarter, and thus did not significantly impact our results for the three months ended March 31, 2025.

In addition to the tariffs announced during the three months ended March 31, 2025, in April 2025, the U.S. announced additional new tariffs on imports from all countries in the world (except Mexico and Canada). China responded by announcing tariffs on U.S. imports, and subsequently both the U.S. and China announced additional tariffs. If maintained at current levels, we expect the U.S. and Chinese tariffs on imports from each other, as well as the U.S. baseline tariff on other countries (currently at 10% but subject to revision in July 2025), and the tariffs announced during the three months ended March 31, 2025, will materially impact our financial results through the incurrence of additional costs. Additional tariffs or other trade restrictions by the U.S. or other countries where we do significant business, or other restrictions on specific industries, such as pharmaceuticals, could further materially impact our results in the future. While we are taking actions to mitigate the impact of tariffs, it is highly unlikely that we will be able to fully offset the additional costs or other negative impacts resulting from the tariffs.

We continue to monitor the global markets in which we operate for changes in customer behavior, changes in government spending and reimbursement, and indirect impacts from the tariffs. Should these factors dampen economic growth, slow global trade, or impact inflation, we could see adverse impacts to our business as our customers adapt to the change in economic environment. We continue to monitor potential impacts on purchasing decisions by both public and private customers in China and other markets as result of the current trade environment, as well as other actions related to tariffs and trade frictions, investigations, or activities that could similarly increase our costs or otherwise impact our business. In addition, if negative sentiment towards U.S. companies influences the purchasing decisions of global customers, our business could be impacted materially.

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China Market

We continue to monitor developments in the market in China. In March 2024, the government in China announced a new stimulus program (“2024 stimulus”) that includes the healthcare sector and is being implemented through China’s provinces. In addition, the focus of the government in China on combating corruption in the healthcare sector remains ongoing, and we expect it to remain a focus in the future. These factors contributed to delayed orders and revenues in our China business throughout 2024 and the