(Reuters) -Illumina ( ILMN ) on Monday lowered its annual forecast and said it plans to cut $100 million in spending after China announced a ban on imports of its genetic sequencing instruments.

The company said it now expects 2025 adjusted profit of about $4.50 per share, compared to its previous expectation of $4.50 to $4.65 per share.

The company added that the cost savings would mitigate the impact of a potential reduction in revenue and related operating income from the company's Greater China business.

Shares of the company were up 3.5% at $89 in extended trading.

"Our new fiscal 2025 guidance provides for limited further earnings contribution from China, and assumes a continuation of the macro trends we see today," said CFO Ankur Dhingra.

China announced a ban on imports of genetic sequencers from Illumina ( ILMN ) that took effect from March 4, just minutes after U.S. President Donald Trump's additional 10% tariff on Chinese goods took effect.

Gene sequencers help determine the sequence of DNA or RNA, allowing scientists to study genetic variations associated with diseases and diagnose rare genetic conditions.

China accounts for about 7% of Illumina's ( ILMN ) sales. Its revenue from the Greater China region was $308 million in 2024.

The company said on Monday that it respects the Chinese commerce ministry's decision and said it will continue to comply with all applicable laws and regulations wherever the company operates.