ResMed Inc (ASX: RMD) could be counting its lucky stars this week as it might be one of the few companies handed a tariff exemption from the Trump administration. 

The company develops, manufactures, distributes, and markets medical devices and cloud-based software solutions.

It operates through two segments, Sleep and Respiratory Care, and Software as a Service (SaaS).

According to Australian Financial Review, it has received an exemption from Donald Trump's trade tariffs. 

This means exports from its manufacturing hubs in Australia and Singapore can likely avoid the US president's global trade war.

Chief executive Mick Farrell told AFR the company manufactures sleep devices and masks in Australia and Singapore, which are protected under the Nairobi Protocol. This international agreement guarantees duty-free treatment for products that help people with disabilities.

We have a tariff exemption under this decades-old protection. The tax revenue wouldn't be material to the US government and there's no reason for them to want to turn over something and get constituents or citizens upset about not caring about people with disabilities.

ResMed rising

ResMed shares are up more than 5% over the last month. 

This was possibly due to a strong Q3 update.

For the three months ended 31 March, ResMed reported an 8% increase in revenue to US$1.3 billion.

This was driven by increased demand for its sleep devices and masks portfolio, as well as solid growth across its Residential Care Software business.

Despite the positive tariff exemption news, Farrell reinforced there is still some uncertainty. Referring to the White House's control over government agencies that make decisions on tariffs, he said that "nothing is rock-solid when an administration, particularly this one, can make changes very quickly".

According to the AFR, ResMed is doubling its manufacturing capacity in the United States with a new plant in Calabasas, California, a move Farrell said was not a reaction to Trump administration policies.

What are brokers saying?

It seems brokers are bullish on this blue-chip stock, with multiple brokers placing attractive price targets on the stock thanks to the tariff exemption and strong financials. 

At the time of writing, shares are trading at $36.75 each. 

Macquarie has a price target $48.00, indicating a 30% upside. 

Analysts at Goldman Sachs have retained their conviction buy rating on ResMed shares with an improved price target of $49.30. This was also influenced by the tariff exemption.

Jed Richards from Shaw and Partners says Resmed is a buy. 

Richards said:

On April 24, ResMed posted an 8 per cent increase in revenue in the third quarter of fiscal year 2025. The gross margin improved 140 basis points to 59.3 per cent. Income from operations increased 14 per cent.

ResMed's innovative products and steady revenue growth make it a solid investment. 

Bell Potter has a $43.31 price target.