“The medtech industry should be exempted from these tariffs,” CEO Scott Whitaker said in a statement. President Donald Trump, speaking in the White House’s Rose Garden, said the U.S. will impose a baseline tariff of 10% on most U.S. imports and higher "reciprocal" rates on certain countries to address trade imbalances, but exempted some goods , including pharmaceuticals. The White House also said non-tariff barriers deprive U.S. manufacturers of reciprocal access to markets and called out India for imposing “uniquely burdensome and/or duplicative testing and certification requirements” in sectors including medical devices that make it difficult for U.S. companies to sell their products in the country. “Historically, industries with a meaningful humanitarian mission have been exempted from broad tariffs,” he said, “and as a result we have seen no to low tariffs on medtech from all key trading partners.” J.P. Morgan analyst Robbie Marcus, in a Wednesday report, said tariffs that would most affect medtech firms include a planned 20% import tax on the European Union, 24% on Malaysia and 10% on Costa Rica, with the 34% rate on China having some impact. Needham analyst Mike Matson said it is difficult to quantify device makers’ tariff exposure from their public disclosures, but many could be less affected than companies in other sectors due to having a considerable amount of manufacturing in the U.S. “Despite this, we believe that nearly every medtech company relies to some degree on raw materials and/or components (such as semiconductor chips) that are sourced from outside the U.S.,” Matson said Thursday in a note to clients. The MDMA, an industry group for device manufacturers, declined to comment on the new tariffs. Tariffs could drive up the cost of providing care at hospitals and health systems by at least 15% , according to a survey of 200 healthcare professionals conducted by Black Book Research in February. Ninety percent of surveyed hospital finance executives said they would shift increased costs to insurers and patients, leading to higher service charges. Ned Hux, pharmaceutical and life sciences tax leader at PwC U.S., told Healthcare Dive via email that tariffs will “almost certainly” pressure healthcare providers through heightened costs for drugs, diagnostics and medical equipment. “For providers, this isn’t just a pricing issue—it’s an operational one,” Hux said over email. “Increased cost volatility could constrain formularies, complicate long-term procurement strategies, and reduce flexibility in managing patient care.” The impact could be more severe if tariffs are administered alongside a broader shift in economic policy that targets European trading partners, such as Ireland, which plays a key role in pharmaceutical manufacturing, the analyst said. “Healthcare providers could find themselves on the front lines of a global policy shift,” Hux added, “with real implications for cost of care and delivery efficiency.”
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