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Highlights
- ResMed receives exemption from US trade tariffs
- Expands US manufacturing to manage policy uncertainty
- Q3 revenue grows 8% to $US1.3 billion
Global sleep technology company ResMed (ASX:RMD) has announced that its products manufactured in Australia and Singapore will remain exempt from United States trade tariffs. The exemption, reaffirmed by US Customs and Border Protection on April 5, comes as a significant relief amid continuing global trade uncertainties.
The exemption means that ResMed’s medical devices and masks, which are essential for managing sleep-related disorders, will not be impacted by the tariffs introduced during Donald Trump’s presidency. These devices are manufactured in regions outside the US and fall under the Nairobi Protocol — a global agreement that ensures duty-free treatment for products designed to support individuals with disabilities. This recognition provides a legal foundation for the tariff exemption and supports the global accessibility of such health-related technologies.
Despite this favorable outcome, ResMed’s Chief Executive, Mick Farrell, noted the unpredictable nature of trade policy, especially in light of the evolving stance of the US administration. To safeguard against any future policy reversals and to strengthen supply chain resilience, the company is doubling its manufacturing capacity within the United States. A new production facility is being established in California, highlighting ResMed’s commitment to maintaining a strong domestic base to serve its largest market.
Alongside these strategic developments, ResMed also released its third-quarter financial results. The company reported an 8% increase in revenue, reaching $US1.3 billion (approximately $2 billion AUD), aligning well with market expectations. However, its earnings per share came in slightly below forecasts at $US2.37.
This expansion strategy and continued tariff protection put ResMed in a stronger position to navigate international trade complexities while ensuring consistent product delivery to US consumers. The company remains focused on innovation and operational efficiency to meet the growing demand for sleep therapy devices across global markets.
ResMed’s ongoing investment in manufacturing infrastructure and its ability to secure favorable trade terms reinforce its proactive approach to global operations and regulatory challenges. The development not only protects its existing revenue streams but also enhances its potential to scale further in North America without disruption from external trade conflicts.
