CAH · 10-Q · 2026Q3 · Full report

Trade Policy and Tariffs

CARDINAL HEALTH INC · 2026-11-05 · Importance 40 · Surprise 42 · In source text

An April 2026 U.S. presidential proclamation imposed tariffs on imported branded pharmaceuticals and associated ingredients; manufacturer price increases or stopped imports could raise costs or disrupt supply. From February 2025 through 2026, Cardinal paid approximately $200 million in IEEPA tariffs, primarily related to GMPD; after the U.S. Supreme Court ruled those tariffs unlawful in February 2026, Cardinal submitted and had accepted Phase 1 and Phase 2 refund requests, and recovered most refunds for those phases by September 30, 2026. Cardinal expects to return to customers the portion of refunds reflecting estimated increased prices paid, and final resolution could affect GMPD segment profit and consolidated operating income. GMPD continues to incur increased costs under other tariff authorities despite cost optimization and price increases; separately, a July 2026 presidential statement proposed 100% tariffs on generic pharmaceuticals beginning in 2028 and 200% beginning in 2029, but implementation remains uncertain.

Key facts

• A July 2026 presidential statement indicated generic pharmaceutical products would face 100% tariffs beginning in 2028 and 200% tariffs beginning in 2029; implementation remained significantly uncertain, and potential tariffs could affect Cardinal Health costs or supply, Pharma profit, and consolidated operating earnings. source
• An April 2026 U.S. presidential proclamation imposed tariffs on imported branded pharmaceutical products and associated ingredients; manufacturer price increases or import stoppages could increase Cardinal Health costs or disrupt supply and affect financial results. source
• Generic pharmaceutical products were not subject to U.S. tariffs at the time of the filing, but Cardinal Health said future tariffs could affect costs or available supply. source
• Cardinal Health does not expect to establish alternative supply sources or otherwise mitigate the potential tariff impact for all products it sources, manufactures, or distributes. source
• GMPD has experienced and expects to continue to experience increased costs from tariffs imposed or expected under legal authorities other than IEEPA. source
• GMPD is reducing tariff impacts through cost optimization and price increases, but those measures have not fully offset the adverse impact and may not do so in the future. source
• Cardinal Health continues to incur increased tariff costs, and financial results will remain negatively affected if it cannot successfully increase prices to customers. source

Impact estimates