Merck & Co. said it expects to lose $200 million to already-announced tariffs in 2025 amid a roiling trade war between the US and China.

Merck’s first-quarter net income increased as sales of its Keytruda cancer drug rose, but the Big Pharma company cut its 2025 adjusted earnings projection, partly to account for recently imposed tariffs.

For 2025, Merck said it still expects sales of $64.1 billion to $65.6 billion, but it lowered its adjusted earnings per share forecast to between $8.82 and $8.97, from a previous $8.88 to $9.03. Analysts have forecast 2025 earnings of $8.95 per share on revenue of $65 billion.