Norwalk-based Xerox Corp. on Thursday said it anticipates that President Trump’s tariffs will lower the company’s 2025 operating income by about $50 million in 2025, as the company’s first-quarter earnings missed analyst expectations.
Since assuming his second presidential term, Trump has levied a series of tariffs on overseas nations that include a 145% levy on Chinese imports.
China countered and raised its tariff on most U.S.-made goods to 125%.
“If China tariffs are reduced from 145% to 60%, we expect to be able to offset the impact of tariffs through a comprehensive set of price increases, surcharges, geographic rebalancing and supply chain-related mitigation efforts, as well as incremental reinvention-related savings,” John Bruno, Xerox’s president and chief operating officer, said on Thursday during the company’s first-quarter earnings call. “This is a very fluid environment, and financial impacts are difficult to forecast. We will do our best to share further forecasted impacts and our mitigation plans as they evolve.”
He said the reciprocal tariffs impact the company’s cost of sales by less than 10%.
“Plans are in place today to shift most China-produced goods to countries with lower tariffs,” Bruno said. “Our print services and financing business, which is more than 60% of the total print revenue, has minimal reliance on imported products.”
During the first quarter, Xerox reported a 1.1% decline in revenue to $1.5 billion, and a net loss of $90 million, or a loss of 75 cents per share. Its adjusted net loss was $4 million, or 6 cents per share, down from an $11 million adjusted profit a year earlier.
The analyst consensus estimate was an earnings-per-share loss of 3 cents.
During the quarter, Xerox, which has been in a cost-cutting mode, said its print business revenue declined 9.4% to $1.29 billion, while its IT solutions business increased revenues by 121.6% to $164 million.
“In a quarter marked by increasing levels of macroeconomic and trade policy uncertainty, our team remained focused on what we can control: the balanced execution of our Reinvention and delivering client success,” said Steve Bandrowczak, chief executive officer at Xerox.
