Due to the high export dependence any imposition of import tariffs by the US would have an adverse impact on the sector, especially for Tier 1 businesses.
Profit margins are rather high in the sector, with most businesses financially resilient enough to cope with minor volatility in demand or commodity prices.
Sales growth in the pharmaceuticals and healthcare market is supported by a robust economic outlook and increasing private and public healthcare spending.
A deterioration of trade relations with China could negatively affect the ICT component supply side and confront US end-consumers with higher sales prices.