Philips has raised its 2025 outlook for for the year, saying the trade agreement between the European Union and the United States reduced the expected impact of American import tariffs.

The Dutch medical technology company said Tuesday that it now expects the tariffs to cost between €150 million and €200 million, down from the €250 million to €300 million it had estimated in May.

“We did what we said we would do in the first half of the year and remain on track,” chief executive Roy Jakobs said in a statement. “We are increasing our full year outlook for margin and free cash flow, including currently announced tariff levels, and we reiterate our comparable sales growth outlook.” 

Jakobs said he welcomed the clarity brought by the deal, which sets a 15% tariff on European exports to the US. “Additional costs are never welcome, of course, but clarity is important. This gives us something to build on,” he said during the presentation of the company’s half-year results.

Demand from the United States remains “very strong”, Jakobs said.

Philips’ order book grew by 6% in the second quarter, largely driven by demand for its medical technology, including CT scanners and ultrasound equipment. The company also announced a major multi-year order from Indonesia for image-guided surgery systems.

Despite the positive outlook, sales in the second quarter fell by 3% to €4.3 billion, mainly due to lower demand for electric toothbrushes and shavers. Philips is sticking to its forecast of at least 1% revenue growth for the full year.

Adjusted profit (ebita) rose to €540 million in the second quarter, an increase of €55 million compared to the same period last year.