Proposed tariffs threaten medical device supply chain

Editor's Note

Analysts say proposed tariffs on imported goods could increase costs for approximately 75% of medical devices marketed in the United States, 69% of which are manufactured solely abroad, according to a January 20 article in Medical Product Outsourcing.

Valued at $197.8 billion in 2023, the US medical device market is projected to grow 4.3% annually over the next decade, the outlet reports. Although proponents argue tariffs could boost domestic production and mitigate future supply chain risks, analysts warned the outlet that the proposed tariffs could destabilize this growth. Higher manufacturing costs from tariffs would likely result in increased device prices, reduced accessibility, and supply chain bottlenecks, particularly for devices like hospital supplies, diagnostic imaging, anesthesia, and respiratory equipment, which rely heavily on imports.