Tariffs strain supply chains, split medical manufacturing community

Editor's Note

President Donald Trump’s latest round of tariffs—especially steep duties on Chinese imports—has sharply divided the medical community, with device manufacturers urging exemptions while some US-based PPE producers cheer the protectionist move. CNBC reported the news April 16.

The tariff rate on China is 145%, the outlet reports, while the 10% rates imposed on other countries are a result of delaying higher rates. Rates on imports from Canada and Mexico, set at 25% in February, were later delayed for many items.

Medical technology and hospital groups are lobbying for relief, warning that the increased costs will ultimately fall on hospitals, patients, and taxpayer-funded programs like Medicare and Medicaid. Sources from industry trade group AdvaMed and the American Hospital Association (AHA) both emphasized that tariffs could degrade the quality of care by limiting access to critical, internationally sourced devices.

Johnson & Johnson’s MedTech division expects a $400 million tariff hit this year, largely driven by Chinese import duties and penalties on non-USMCA goods from Canada and Mexico, CNBC reports. Company executives argue that tax incentives—not tariffs—are a more effective strategy to bolster US manufacturing.

As detailed in the article, medical equipment providers can’t simply pass tariff-driven cost hikes onto consumers because many healthcare supply contracts are fixed annually.

However, personal protective equipment (PPE) manufacturers applaud the duties. The American Medical Manufacturers Association says US companies have struggled to compete with Chinese manufacturers heavily subsidized by Beijing. Altor Safety, which produces masks and gloves domestically, told CNBC the new 245% tariff on items like syringes could finally shift purchasing power back to US firms.

Still, consultants at PwC and Boston Consulting Group told CNBC most companies aren’t reshoring to the US—they’re relocating production to lower-tariff countries like Mexico or Canada instead.

The full report offers additional detail and context, including how multinational MedTech firms like Zimmer Biomet and Stryker are bracing for complexity and cost escalation.