J&J expects $400M in tariff-related costs

Health care giant Johnson & Johnson expects about $400 million in tariff-related costs this year.

The costs will be felt primarily within the company’s medical technology unit, which makes a range of medical devices and surgical products. The most substantial impact comes from tariffs against China and retaliatory tariffs from China, said Joseph Wolk, Johnson & Johnson’s chief financial officer, in a conference call with analysts following the company’s latest earnings results.

The company’s estimate also includes the impact from tariffs on aluminum and steel, along with tariffs against key U.S. trading partners Canada and Mexico. Johnson & Johnson said that contractual agreements already in place limit its leverage on price increases that could potentially soften the impact.

The cost estimate does not include possible tariffs on imports of pharmaceuticals. The Trump administration has launched an investigation into imports of pharmaceuticals, which is a step towards imposing tariffs.

Tariffs, especially on pharmaceutical products, could lead to supply chain issues and shortages, said CEO Joaquin Duato. He said the best way to build up manufacturing in the U.S. is through tax policy, not tariffs.

The company is investing more than $55 billion over the next four years with the goal of making all of its advanced medicines that are used in the U.S., within the U.S.

Zuckerberg dodges on Instagram strategy

In his second day on the stand of a landmark antitrust trial, Meta CEO Mark Zuckerberg said he bought Instagram and WhatsApp because it was hard to build new apps and dodged questions about whether he was trying to snuff out competitive threats to his company.

“Building a new app is hard,” he said Tuesday when asked why he had seemed intent on buying Instagram in one 2012 email that was presented. “We’ve probably tried building dozens of apps over the history of the company, and the majority of them don’t go anywhere.”

Zuckerberg’s testimony is central to the antitrust trial. The CEO spent several hours Monday answering questions from lawyers as they tried to make the case that Zuckerberg saw the other apps as rivals that he needed to take out. During the questioning, which at times became contentious, Zuckerberg frequently said he didn’t remember his thought process for certain emails.

On Tuesday, lawyers for the FTC pressed Zuckerberg to explain internal communications that preceded the purchases of Instagram and WhatsApp, both of which the company later bought. Zuckerberg’s notes — some of which date back 15 years — detailed fears about how his social media company, then known as Facebook, could compete on mobile devices.

Target baby food is recalled over lead

A company that makes baby food sold under a Target store brand is recalling more than 25,000 packages of a product because it may contain elevated levels of lead.

Miami-based Fruselva issued the recall in March for Target’s Good & Gather Baby Pea, Zucchini, Kale & Thyme Vegetable Puree, sold in 4-ounce tubs, according to the U.S. Food and Drug Administration.

The packages include lot number 4167, with a best-by date of Dec. 7, and lot number 4169, with a best-by date of Dec. 9.

Consumers should not feed babies the products.

The recall is listed as Class II, which means the products are unlikely to cause serious harm, but still have the potential to result in temporary or reversible problems.

There is no safe level of exposure to lead for children, according to the U.S. Centers for Disease Control and Prevention.

Compiled from Associated Press and New York Times reports.