Cochlear Ltd (ASX: COH) shares have been bouncing around on Thursday.
In morning trade, the hearing solutions company's shares were down as much as 4.5% to $256.43.
But this afternoon, they have started to recover and currently sit 0.5% lower for the day at $266.74.
Image source: Getty Images
What is going on with Cochlear shares?
The company's shares were caught up in a broad market selloff this morning after US President Donald Trump made his big announcement.
From Saturday, the United States will put a minimum 10% tariff on foreign imports, including those from Australia, as part of what Trump has dubbed his "liberation day" economic plan.
This has been bad news for a number of ASX shares, such as Ansell Ltd (ASX: ANN), Breville Group Ltd (ASX: BRG), Lovisa Holdings Ltd (ASX: LOV), and Cettire Ltd (ASX: CTT). They have all fallen heavily today amid concerns over the impact that the trade tariffs could have on their respective businesses.
But what about Cochlear? How will it be impacted?
Well, the short answer is we don't know yet. Until greater detail is provided, Cochlear advised that it is unsure what the impact will be. However, there is reason to hope that the impact will not be material. This may explain why Cochlear shares have recovered from their intraday lows this afternoon.
Cochlear response
This morning, Cochlear released an announcement, explaining that it was a complex situation. It said:
There are complexities in understanding the application of the new tariff. Cochlear has long been importing its products under a chapter of the Harmonized Tariff Schedule of the United States that provides for duty-free importation on a range of products into the US, including hearing implants. We are expecting further detail in the US Customs and Border Protection Notice of Implementation, which is expected to be published in the next week. An update will be provided to the market in due course.
Judging by the way that Cochlear's shares have recovered today, it seems that some investors believe that the company will escape from the wrath of Trump's tariffs. Though, that will not be known for sure until the company releases a follow up announcement next week or the week after.
For now, the team at Citi are likely to see recent weakness as a buying opportunity. A note from last month reveals that the broker has a buy rating and $300.00 price target on the company's shares.
