Trump's Chinese Import Tariff Hike Could Take Toll On Consumer Health Sector
This article was originally published in The Pink Sheet & The Rose Sheet
Low margins, limited supplier alternatives leave little room for OTC drug marketers in the US to maneuver as ingredients continue to be subject to Chinese import tariffs.
You may also be interested in...
Consumer health industry groups plan to comment at June 17 public hearing on USTR plan for 25% tariff on imports from China not included in three earlier rounds of duties. NPA applauds USTR for allowing exclusion process for imported products valued at $200bn already hit with tariffs in 2018.
Supplement marketers, Chinese suppliers and US retailers likely will work out mitigating costs from US-China trade war, which ratcheted up this month with Trump administration’s proposed fourth round of tariffs. Some companies are discussing cost mitigation with retailers, but others seek other suppliers.
JP Morgan analysts had questions and J&J CEO Alex Gorsky and CFO Joseph Wolk had answers about liability suits alleging that use of the Johnson's brand talcum powder has caused mesothelioma or ovarian cancer. On the Johnson's brand outlook following its relaunch as a natural product line, Gorsky says sales were a key driver in the firm's consumer health sales in the 2018 third quarter. China, meanwhile, is a model for growing sales online, he says.