(Reuters) -3M ( MMM ) on Friday raised its full-year profit forecast and projected a smaller tariff-related hit to its 2025 earnings, amid easing trade tensions between the U.S. and China, sending shares of the industrial giant up nearly 4% in premaket trading.

The company now expects a full-year adjusted profit between $7.75 and $8 per share, compared with its previous estimate of $7.60 to $7.90.

The forecast includes a net hit of 10 cents per share to its 2025 profit, compared with its earlier forecast of 20 cents to 40 cents.

As some of the trade tensions show signs of easing, companies have begun to reevaluate the potential financial fallout. Pharmaceutical major Johnson & Johnson has halved its projection for tariff-related costs to $200 million this year.

China, which accounts for roughly 10% of 3M's ( MMM ) global revenue, signed a comprehensive trade deal with the U.S. in June following months of trade tensions.

Under the agreement, the U.S. has imposed a 10% baseline tariff on all Chinese imports, 20% on goods associated with President Donald Trump's accusation that China had not done enough to stem the flow of fentanyl, and kept the existing 25% tariffs from his first term.

In April, 3M ( MMM ) had estimated an $850 million potential annualized impact from tariffs before exemptions, with $675 million tied to U.S. and China tariffs.

The Scotch tape maker reported second-quarter adjusted profit of $2.16 per share compared with Wall Street estimates of $2.01, according to data compiled by LSEG.

Adjusted operating income margin in the quarter stood at 24.5%, up 290 basis points from a year earlier, as the company turned its focus away from legal liabilities and supply-chain issues, and toward developing new products.

Total revenue for quarter came in at $6.16 billion. Analysts, on average, were expecting $6.11 billion in revenue.

(Reporting by Aishwarya Jain in Bengaluru; Editing by Shinjini Ganguli)