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J&J Expects Smaller Tariff Hit Than Previously Forecast
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Good morning, CFOs. An interview with Johnson & Johnson CFO Joseph Wolk; Trump denies any plans to fire Fed Chair Powell; plus, Goldman Sachs profit surges.
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Johnson & Johnson boosted its full-year outlook as it posted better-than-expected profit and sales in the second quarter. PHOTO: BRENDAN MCDERMID/REUTERS
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Johnson & Johnson expects a smaller hit from tariffs than it predicted earlier in the year, despite uncertainty over the prospects of new U.S. levies on pharmaceuticals, according to the company’s chief financial officer in an interview by my colleague Peter Loftus.
J&J now predicts tariffs will add $200 million to costs for 2025, down from a forecast of $400 million made earlier this year, CFO Joseph Wolk said.
He chalked up the improvement to the U.S. and China backing off of certain tariffs against each other, as well as delays in new U.S. duties on Mexico and Canada.
“Those worked to our favor,” Wolk said. The benefit is primarily in J&J’s medical-device business.
Trump continues to threaten hefty tariffs on medicines imported into the U.S. Wolk said J&J’s 2025 forecast doesn’t incorporate prospective pharmaceutical levies.
“We’ll have to see where that goes,” he said, adding that he was encouraged the White House has so far held off on pharmaceutical tariffs.
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M&A: How to Factor Trade Policy Impacts Into Deal Pricing
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📆 Earnings
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Abbott Laboratories
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Fifth Third Bancorp
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GE Aerospace
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Netflix
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PepsiCo
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Taiwan Semiconductor Manufacturing
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Travelers
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U.S. Bancorp
📈 Economic Indicators
The Census Bureau reports retail sales data for June.
The National Association of Home Builders releases its Housing Market Index for July.
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What Else Matters to CFOs
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Jerome Powell’s term as Fed chair expires next May. PHOTO: KENT NISHIMURA/GETTY IMAGES
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President Trump denied that he was planning an attempt to fire Federal Reserve Chair Jerome Powell after polling Republican lawmakers during a closed-door meeting about whether he should oust him.
“We’re not planning on doing anything,” Trump told reporters at the White House, adding later, “I don’t rule out anything, but I think it’s highly unlikely. Unless he has to leave for fraud.”
The president suggested he could attempt to remove Powell for cause, arguing the central bank spent too much money on renovations of two historic office buildings.
During a meeting Tuesday at the White House, Trump said he asked GOP lawmakers how they felt about firing the Fed chair and several expressed support for the idea. The president then suggested he could move to fire Powell in the near future, according to a senior administration official.
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“I talked to them about the concept of firing him. I said, ‘What do you think?’ Almost all of them said I should. But I’m more conservative than they are.”
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—President Trump, regarding Federal Reserve Chair Jerome Powell, during a meeting Tuesday at the White House
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Diageo said Chief Executive Officer Debra Crew stepped down after two years in the role, as the world’s largest spirits maker grapples with a pullback in alcohol consumption and tariff uncertainty. Chief Financial Officer Nik Jhangiani will assume the role of CEO on an interim basis, said the company behind Johnnie Walker whisky, Guinness beer and Smirnoff vodka, noting that it had started a search process for a permanent successor.
—Andrea Figueras contributed to today’s Ledger.
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Content From Our Sponsor: DELOITTE
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Top 10 Most-Read Business Insights, Q3 2025
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The Wall Street Journal's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics including corporate tax, accounting, regulation, capital markets, management and strategy.
Follow us on X @WSJCFO. The WSJ CFO Journal Team comprises reporters Kristin Broughton, Mark Maurer and Jennifer Williams, and Bureau Chief Walden Siew.
You can reach us by replying to any newsletter, or email Walden at walden.siew@wsj.com.
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