Track how companies discuss tariffs and trade policies in their earnings calls, and understand their impact across different industries and regions.
It costs us some wholesale growth, but it protects our partners' inventory health, our premium positioning and ensures the best position for launching what we believe are outstanding innovations in 2027.
We view the refund as nonrecurring and would note, on an ongoing basis, we continue to incur costs from the tariffs that replaced IEEPA.
We also assume the tariffs currently applicable to Alcon's business remain in effect through year-end, including U.S. import tariff rates of approximately 10% to 12.5%.
We have sought tariff refunds where appropriate there, we've received what I would call a modest amount, but nothing material as we look out at the full-year.
These tariffs also provide tangible customer benefits.
Automotive remains an area of strength overall, though we believe this business could be growing faster absent the impact of increased tariffs on the industry.
We incurred incremental U.S. carrier pass-through fees of $71 million, which drove the year-over-year and quarter-over-quarter declines.
Year-over-year profit pressure was primarily driven by the impact of significantly higher input costs... including elevated green coffee costs and tariffs to flow through our second quarter P&L.
During the 2Q 2026, the impact of tariffs and the increase in the price of aluminum on our operating results was modest.
We continue to expect both gross and operating margin expansion to be weighted toward the first half of the fiscal year, supported by the timing of key marketing activations relative to the prior year as well as our current tariff assumptions.