Merck says it will eat $200 million in tariff costs

German pharmaceutical giant Merck said in a Thursday earnings report that it will take a $200 million hit in added costs this year from the tariffs implemented by the US so far, leading it to tweak down its outlook for 2025.

The drug and vaccine maker now expects its annual earnings per share to hit between $8.82 and $8.97, down from $8.88 to $9.03. Merck is most affected by tariffs on China, which is one of its biggest markets and a manufacturing hub. Its estimate does not account for the pharmaceutical tariffs the Trump administration is still weighing.

It reported earnings per share of $2.22, better than the $2.14 analysts polled by FactSet were expecting, and revenue of $15.5 billion, compared with the $15.3 billion the Street guessed. Shares were flat in premarket trading.

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