By John Keilman

Chemical and materials maker DuPont faces a tariff challenge that is different from many U.S. manufacturers-most of its potential $500 million exposure comes from shipping products to its own business in China.

The country accounts for about a fifth of DuPont's $12 billion annual revenue, thanks in part to the electronics business that serves China's booming semiconductor fabrication industry. During an earnings call with analysts, Chief Executive Lori Koch said the company sends intermediate products to China for completion before shipping them to customers.

"That's why we're able to flex our own supply chain internally to be able to mitigate a lot of that impact," she said.

The company said that by shifting its supply chain, seeking exemptions from the Chinese government for its products and adding tariff-related surcharges, it expects to reduce its tariff charge for the year to roughly $60 million.

Executives had little to add about China's antitrust investigation into its Tyvek business, widely seen as retaliation for the Trump administration's tariffs on the country. Sales of the material, used in protective suits and building wraps, are continuing in China, executives said, adding that they didn't expect the probe to expand into other parts of the business.

DuPont's first-quarter results beat Wall Street expectations, with $3.1 billion in net sales and adjusted earnings per share of $1.03. Analysts polled by FactSet had projected $3 billion in sales and per-share earnings of 95 cents.

The company's shares were up about 1% in morning trading Friday.

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May 02, 2025 11:18 ET (15:18 GMT)

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