Trump’s tariffs: Resmed ‘well-positioned’ with exemptions, CEO says

SAN DIEGO – Resmed says that U.S. Customs and Border Protection has confirmed that its devices will continue to be exempt from tariffs and, therefore, the company does not expect a material impact on its financial results from any new tariffs. 

As of April, the ever-changing tariff landscape included a 10% general tariff on imported products and a 145% tariff on imported products from China. 

“I can report that because of the fact that our products are used to treat patients with chronic respiratory conditions (and) that have been subject to global tariff relief for decades, we have reaffirmed that is the case with federal authorities just this month in the current setting,” said Mick Farrell, chairman and CEO during a recent conference call to discuss the company’s financial results for the third quarter of fiscal year 2025. “In short, Resmed is very well positioned with exemptions in place for our products.” 

Resmed, which primarily makes its products in Sydney and Singapore, has received an exemption under the so-called the Nairobi Protocol, which expands the scope of the Florence Agreement to include materials specially designed or adapted for the use or benefit of handicapped persons, allowing for duty-free treatment of these imports.   

When asked during the call if the exemption would also apply to other CPAP devices imported into the U.S., Farrell said, “As for our competitors, particularly coming from hot-band countries where tariffs are in the triple-digits, I would ask you to go talk to them to speculate on that. I think it will be very different for players. We're coming in from Australia and Singapore, two very friendly U.S. nations that have long-standing relationships and very good approaches. For those coming from China or Mexico or beyond I think, you've got to ask them and see where they're at. 

On a larger scale, Farrell is advocating for a “zero for zero” tariff and med-tech exemption as a current board member and future chairman of AdvaMed. 

"So, I’ll be leading the industry asking for tariff exemptions for med tech, because I think it’s the right thing to do,” he said. “I don’t need to be a competitor with a short-term advantage – I'll beat them, anyway. We’ll fight to do those as the right thing on a humanitarian basis.” 

Even with an exemption, Resmed is also investing in its U.S.-based manufacturing. The company, which currently has a smaller facility in Chatsworth, Calif., expects to open a new high-tech facility in Calabasas, Calif., in June that will double its manufacturing footprint in the U.S. The $30 million facility will serve as the hub of the company's R&D for motor technology and expand its manufacturing of silicone mask cushions, bringing those products closer and more efficiently to HME providers in the U.S., its largest market. 

“This facility is designed to scale over the coming years with multiple mask molding cells and more growth, as mask manufacturing increases to meet growing demand,” Farrell said.  

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