Track how companies discuss tariffs and trade policies in their earnings calls, and understand their impact across different industries and regions.
Ultimate tariff impacts are impossible to predict at this point.
As tariffs impact the cost of inventory, precise inventory management and handling of inventory to optimally satisfy end customers is more important than ever.
We're also actively mitigating near-term tariffs.
Tariffs are not new for East West or our customers. We have been taking tariffs into consideration since 2017.
Based on what is currently implemented, we believe we can largely offset the impact from these tariffs through a combination of supply chain adjustments, surcharges, manufacturing footprint changes and other cost actions.
We feel comfortable maintaining our initial 2025 sales and adjusted EPS guidance with the current tariff impacts.
We currently expect the impact to our income statement for 2025 to be additional cost of sales of approximately 1.7% of revenue, plus or minus 30 basis points.
When it comes to tariffs, we don't expect any direct impact to our procurement costs in 2025.
we believe our exposure is small... any tariff impact we think we can cover at this point, given the guidance that we've put out there.
Tariffs are going to be a headwind this year, but we thought it would be prudent to hold the impact outside of our full-year guidance while I digest the new policies and fully develop and qualify mitigation plans.