Healthcare providers and industry analysts are expressing serious concerns following President Donald Trump’s announcement of extensive tariff measures that will affect medical supplies and equipment imports. The new policy, revealed Wednesday, introduces a 10% baseline tariff starting April 5, with additional country-specific duties beginning April 9.
The measures will impact essential medical items ranging from basic supplies like syringes and catheters to sophisticated diagnostic equipment and glucose monitoring devices. While pharmaceuticals received exemptions, medical device manufacturers and healthcare facilities face significant challenges ahead.
According to Fitch Ratings’ senior director Kevin Holloran, healthcare providers will struggle to absorb these increased costs, particularly since most are locked into multi-year contracts with payers that prevent them from passing expenses to end users. This situation could lead to decreased operating income unless alternative cost savings or revenue sources are identified.
Providence healthcare system estimates the tariffs could result in annual costs between $10 million and $25 million. CEO Erik Wexler emphasized that these measures come at a particularly challenging time, as the healthcare supply chain remains vulnerable following recent disruptions, including shortages caused by Hurricane Helene’s impact on IV solution manufacturing.
Industry advocacy groups have been actively seeking exemptions for medical supplies. The American Hospital Association (AHA) and AdvaMed, a leading medical device industry group, have both urged the administration to exclude healthcare-related products from the tariffs. The AHA’s vice president of quality and patient safety policy, Akin Demehin, acknowledged the administration’s goal of strengthening domestic supply chains but stressed the need to prevent disruptions in patient care.
The Florida Hospital Association’s president and CEO, Mary Mayhew, highlighted the complexities healthcare providers face in adapting their supply chains. Many hospitals rely on group purchasing organizations for cost efficiency, making it difficult to quickly switch suppliers or establish direct purchasing relationships.
The impact on medical device manufacturers varies by sector. Diabetes technology companies like Dexcom, Insulet, and Tandem Diabetes appear particularly vulnerable, according to Morningstar analyst Debbie Wang. Tandem faces the highest risk due to its reliance on foreign manufacturing and components. Meanwhile, larger cardiac and orthopedic device manufacturers such as Boston Scientific and Zimmer Biomet are expected to have more flexibility in adjusting their manufacturing locations to minimize tariff impacts.
For physician practices, the tariffs present another financial challenge amid existing pressures from Medicare reimbursement reductions and post-COVID inflation. Anders Gilberg of the Medical Group Management Association warns that practices have limited ability to offset increased costs, potentially threatening their operational viability.
Some analysts, including those at J.P. Morgan, suggest that
fixed-price contracts may provide temporary protection from immediate tariff effects. Northwell Health, for instance, anticipates a delay before feeling the full impact of these measures due to existing contractual arrangements.
The longer-term implications remain uncertain, particularly regarding potential exemptions and the duration of the tariffs. William Blair analysts note that the full cost impact on the medical device sector will become clearer in 2026 as companies renegotiate purchasing contracts. For now, healthcare providers and medical device
manufacturers must navigate what FHA’s Mayhew describes as “largely unchartered waters” while seeking ways to maintain quality care amid rising costs and supply chain complexities.
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