Merck & Co. said it expects to lose $200 million to already-announced tariffs in 2025 amid an escalating trade war between the US and China, where demand for its blockbuster Gardasil vaccine is plunging.

The company’s stock fell as much as 2.8% after markets opened in New York Thursday. For the first quarter, Merck’s results beat estimates. First quarter sales were $15.5 billion, above the $15.3 billion analysts had predicted. Adjusted earnings of $2.22 per share outpaced expectations of $2.13 a share.

Merck said today its first-quarter adjusted profit rose 7% as lower costs helped offset a 2% decline in sales, reflecting a January decision to pause shipments of its Gardasil vaccine to China due to a downturn in demand.