Fisher & Paykel Healthcare (ASX:FPH) said its costs are likely to increase in fiscal 2026 due to new US tariffs, according to a filing with Australia and New Zealand bourses.

The new tariffs may add two to three years to the expectation of reaching a gross margin target of 65%, the filing said.

The company currently manufactures about 45% of its products in Mexico and about 43% of its revenue came from the US in the fiscal first half ended Sept. 30, 2024, as about 60% of US volumes are supplied from the company's Mexico manufacturing facilities, the filing added.

The US government recently said that a 25% tariff will be imposed on imports from Mexico and Canada, while a 10% tariff will be imposed on Chinese imports.

The company will provide an update on the outlook for the fiscal year 2026 and an updated estimate of the timeframe to return to the gross margin target, in its earnings report for the fiscal year ending March scheduled for release at the end of May, per the filing.

The company does not expect a material impact from the new tariffs on its net profit after tax for the current fiscal year.