Johnson & Johnson worried about losses from China tariffs despite projecting $700 million in profits

Johnson & Johnson’s CEO said President Trump’s tariffs on pharmaceuticals could cause a problem for drug supply chains.

During an investor call, CEO Joaquin Duato told his colleagues that they should work with the Trump administration to address supply chain vulnerabilities that could arise as a result of tariffs.

The remarks were seemingly an effective call for the Trump administration to ease tariffs on raw ingredients and drugs from China, the country the president has hit hardest in his new economic plan.

At the same time, however, Johnson & Johnson reported strong first-quarter revenues that even surpassed Wall Street estimates, Reuters stated.

According to the report, the pharmaceutical giant detailed plans to raise U.S. investments by 25% in the next four years — with some commitments already made — which would total more than $55 million.

Sales for 2025 were forecast to be around $700 million, and an upcoming nasal spray that allegedly treats depression is expected to generate sales between $3 billion and $3.5 billion annually by 2028. The company’s chief financial officer reportedly claimed that a $400 million loss, as a result of tariffs, had been worked into the profit margin calculations.

Following a third failed bankruptcy attempt, the company is still facing over 90,000 lawsuits from families who alleged that talc-based Johnson & Johnson products were contaminated with asbestos and caused ovarian cancer after prolonged use.

The Lawsuit Information Center reported that a bankruptcy court rejected Johnson & Johnson’s $9 billion settlement proposal. Divided equally among 90,000 cases, that figure would equate to $100,000 per lawsuit.

At least 3,500 claimants are from the United Kingdom, making this case one of the largest class-action suits in English and Welsh history. While the majority of claimants are women, some men are included in those claims that also said the company’s powder products contained asbestos and caused cancer.

According to the Guardian, the number of lawsuits has nearly doubled since November 2024.

‘[Duato] oversaw the company’s rapid response to the COVID-19 pandemic.’

As for CEO Duato, the executive is coming off one of the most lucrative years of his career after his income increased to $28.4 million in 2023, versus $13.1 million in his first year as CEO in 2022, per Fierce Pharma.

Duato is a dual citizen of the U.S. and Spain and got his start at Johnson & Johnson subsidiary Janssen Pharmaceuticals. In 2021, BioSpace reported that Duato sat on the board of directors for UNICEF USA, while Fox Business noted he is the executive sponsor of Johnson & Johnson’s African Ancestry Leadership Council.

Duato was also praised by his company for his work during COVID-19:

“[Duato] oversaw the company’s rapid response to the COVID-19 pandemic and led coordination of global initiatives to safeguard the health of employees and ensure business and supply chain continuity,” a company release said.

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