US Medical Devices Will Likely Become More Costly Under Trump TariffsUS Medical Devices Will Likely Become More Costly Under Trump Tariffs

Many medical devices in the United States will incur a price hike if President-elect Donald Trump’s promised tariffs on imported goods go into effect, according to a Nov. 26 press release from GlobalData Plc.

The data analytics and consulting firm based in London, England, predicts that roughly 75% of medical devices marketed in the US will see a price increase. About 69% of US marketed medical devices are manufactured exclusively outside of the country, all of which are targeted by the new tariffs.

GlobalData pegs the US medical equipment market at $197.8 billion in 2023 and is projected to reach $305.1 billion in 2033, with a compound annual growth rate (CAGR) of 4.3%.

“The tariffs may have negative consequences for a continually growing market due to an aging population and the increasing prevalence of long-term illnesses,” said Aidan Robertson, a medical analyst at GlobalData. “Companies will be forced to increase prices to make up for losses incurred by the proposed tariffs. Additionally, this may cause supply chain disruptions, reducing accessibility to medical devices and inflating the cost of these products due to the higher demand in comparison to the supply.”

Trump’s proposal to impose 60% tariffs on all Chinese imported products will likely cause “significant disruptions” in the supply chain and will impact the estimated 13.6% of total US-marketed medical devices which are currently manufactured in China.

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Medical device firms like South Korea-based L&K Biomed Co., which has invested heavily in foreign manufacturing and produces 100% of its products outside the US, is likely to be adversely affected the most by the tariffs. Conversely, a business like Becton, Dickinson and Company, which only manufactures an estimated 12% of its products abroad, can expect a more secure position in the US market.

The most common types of medical devices imported to the US are hospital supplies, diagnostic imaging and anesthesia, and respiratory devices. In turn, these products are likely to be significantly impacted by imposed tariffs.

“While increased tariffs on imported goods could strengthen the US medical device market by promoting domestic production and reducing susceptibility to supply chain disruptions in the long term, the negative effects of applying these tariffs are clear,” Robertson said. “Ultimately, the economic impact of imposing these increases will lead to a less favorable environment with increased costs, potential supply chain disruptions, and possible retaliatory tariffs from affected countries.”

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The press release uses data and information sourced from proprietary databases, including Medsource Database, which collates data on the medical device supply chain, primary and secondary research, and in-house analysis conducted by GlobalData’s industry experts.