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LONDON — President-elect Donald Trump's proposed tariffs on imported goods are set to impact approximately 75% of U.S.-marketed medical devices, most of which are manufactured abroad, according to GlobalData. The Medsource Database, which tracks the medical device supply chain, reveals that 69% of U.S. devices are produced outside the country.
The U.S. medical equipment market, valued at $197.8 billion in 2023, is projected to grow to $305.1 billion by 2033 at a compound annual growth rate (CAGR) of 4.3%. However, says Aidan Robertson, a medical analyst at GlobalData, tariffs could pose significant challenges to this growth trajectory.
"The proposed tariffs could negatively impact a growing market that serves an aging population and rising cases of chronic illness," Robertson explains. "Companies will likely raise prices to offset losses, while supply chain disruptions could limit access to medical devices, driving up costs further due to a supply-demand imbalance."
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Trump's plan to impose a 60% tariff on Chinese imports could hit 13.6% of U.S.-marketed devices currently manufactured in China. Companies like L&K Biomed, which rely entirely on foreign manufacturing, are expected to face the brunt of these policies. In contrast, firms like Becton Dickinson may be better insulated, with only 12% of products made abroad.
Critical imports such as hospital supplies, diagnostic imaging equipment, and respiratory devices will likely be most affected.
While higher tariffs could bolster domestic production in the long run, Robertson warns of immediate challenges: "The economic impact could mean increased costs, disrupted supply chains and retaliatory measures from trade partners."
As the U.S. medical device industry braces for these potential changes, the implications for patients and health care providers remain a pressing concern.
