Cochlear seeking further detail on US tariffs 

Implantable hearing aid manufacturer Cochlear has said it is seeking clarification on the application of new tariffs on Australian exports to the United States.

Its statement on Thursday morning swiftly followed the “Liberation Day” announcement by US president Donald Trump of tariffs on all importers to the US. Australian exports face the baseline rate of 10 per cent. 

According to a chart Trump brought to his speech, some of the higher levels applied were 46 per cent (Vietnam), 44 per cent (Sri Lanka) and 34 per cent (China.) 

Cochlear said there are “complexities in understanding the application” of tariffs.

“Cochlear has long been importing its products under a chapter of the Harmonized Tariff Schedule of the United States that provides for duty-free importation on a range of products into the US, including hearing implants,” the company said in an ASX announcement.

“We are expecting further detail in the US Customs and Border Protection Notice of Implementation, which is expected to be published in the next week. An update will be provided to the market in due course.”  

Australia’s total exports of goods to the US are worth approximately $22 billion annually, with the US accounting for 4.1 per cent of all exports.

The announcement followed a period of lobbying and speculation on tariff levels, with an Australian carve-out sought based on a US trade surplus in two-way trade.

“For Australia, these tariffs are not unexpected, but let me be clear, they are totally unwarranted,” said prime minister Anthony Albanese following the news.

The ASX200 was down 1.69 per cent at 11:20 on Thursday. Shares in Cochlear were down 1.43 per cent.

Update: According to a newly-released statement from the White House, the tariffs will come into effect on April 5, 2025 at 12:01 a.m. EDT

Picture: credit Cochlear

Further reading

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Cochlear’s strong results as sales rebound

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