Major medtech companies are preparing for significant financial headwinds as tariffs threaten to disrupt the $200 billion U.S. medical device market.
A recent analysis by iData Research warns that import duties—ranging from 10% to as high as 145% on some Chinese goods—could trigger widespread supply chain disruptions and price increases throughout the industry.
"With the U.S. medical device and pharmaceutical sectors highly dependent on global supply chains, tariff volatility is triggering real consequences, from procurement delays to pricing spikes," said Kamran Zamanian, Ph.D., CEO of iData Research.
Several industry leaders, including Johnson & Johnson, GE HealthCare and Intuitive Surgical, have already flagged potential financial hits from the evolving tariff landscape. Still, the full impact remains difficult to quantify amid ongoing policy uncertainty.
J&J executives said in April they expect global tariff escalation to deliver a $400 million blow to the company’s 2025 financials, primarily affecting its medtech division. The bulk of the impact stems from U.S. tariffs on Chinese imports and retaliatory duties imposed by China.
GE HealthCare, despite beating first-quarter expectations, revised its full-year outlook downward, citing tariffs as a key concern. The company estimates a $500 million financial impact this year, with $375 million tied specifically to bilateral tariffs with China.
Meanwhile, Intuitive said tariffs are expected to increase its cost of sales by about 1.7% of annual revenue—roughly $140 million based on its 2024 revenue of $8.35 billion. The company noted that the cost burden is likely to grow each quarter through the end of the year.
The medtech sector is now lobbying for tariff relief, warning that the duties could ripple beyond corporate balance sheets and negatively affect patient access to essential medical technologies.
AdvaMed, a medtech trade association, has called for exemptions for medical devices, arguing that tariffs could hinder investments in research and development and lead to higher prices for patients.
According to iData, approximately 69% of medical devices sold in the U.S. are manufactured abroad, underscoring the industry’s vulnerability to international trade policy shifts.
J&J CEO Joaquin Duato added his voice to the chorus on a first-quarter earnings call, saying that if the goal is to boost domestic manufacturing, tax policy would be a more effective and less disruptive tool than tariffs. He pointed to the company’s own plan, announced in March, to increase U.S. investment by 25%, a commitment of more than $55 billion over four years, which includes building a new biologics facility in North Carolina.
As the industry pushes for relief and reassesses sourcing strategies, recent court activity surrounding the legality of certain tariffs has only heightened unpredictability. While the tariffs remain in effect for now, ongoing legal challenges have deepened the uncertainty for medtech companies.