Gooch & Housego Seeks Alternatives Amid US Tariff Impact
(Reuters) -Britain's Gooch & Housego on Tuesday said it was looking for alternative raw material sources due to retaliatory measures from some nations to U.S. tariffs, and any cost increases due to these changes would result in price hikes.
G&H, which makes optical components and laser systems for industrial, scientific, and medical applications, said it was managing new tariff arrangements set by the United States but was unclear about the overall impact on its operations.
Global supply chains are in jeopardy and companies with multi-national exposure are bracing for impact from a prolonged trade war after U.S. President Donald Trump's sweeping tariffs fuelled recession fears across the world.
G&H, which operates in the U.S. and Europe and caters to customers across aerospace, defence and telecom sectors, said the firm's direct exposure to countries facing significant tariff increases was limited, but it was closely watching the inflationary impacts of rising global levies.
"We intend to pass on cost base increases arising from these developments through higher pricing," G&H said.
However, G&H said some parts of its business should benefit in the long-term from the new tariffs, due to its "considerable" U.S. based manufacturing presence.
(Reporting by Chandini Monnappa and Aby Jose Koilparambil in Bengaluru; Editing by Varun H K and Mrigank Dhaniwala)
