-U.S.-headquartered medical device maker Belluscura said it was withdrawing its forecast for 2025 on Tuesday due to the latest U.S. tariffs on China.
The medical device developer said that a “significant proportion” of the raw materials and component parts used in portable oxygen concentrators and other devices, are currently manufactured in China, which now faces 54% tariffs on goods imported into the U.S, with more threatened.
WHY IT’S IMPORTANT
Belluscura sells X-PLOR portable oxygen concentrators in the U.S., China, Singapore, and Hong Kong, with the product being its primary revenue source according to its 2023 annual report.
Companies, such as Belluscura, are preparing for the impact of a prolonged trade war as U.S. President Donald Trump’s sweeping tariffs have put global supply chains at risk and stoked fears of a global recession.
China, the world’s second-largest economy, has vowed to “fight to the end” if the U.S. hikes tariffs further. If Trump follows through with the additional 50% tariff hike, total U.S. duties on Chinese goods could reach 104% by Wednesday.
KEY QUOTE
“The company is currently assessing the potential financial implications, risks and opportunities of the imposition of tariffs,” Belluscura, which is headquartered in Plano, Texas but listed on the London Stock Exchange, said in a statement.
BY THE NUMBERS
Belluscura, had said it expected to make over $16 million in annual sales, which should make it profitable at the EBITDA level and had forecast revenue for 2025 to be not less than $12.7 million.
MARKET REACTION
Belluscura shares fell more than 50% to a record low of 0.62 pence.
(Reporting by Anandita Mehrotra in Bengaluru; Editing by Tasim Zahid)
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