AdvaMed repeats call for tariff exemption as new levies threaten healthcare supply chain

The Canadian flag proudly waves outside a building against lush greenery and urban architecture.

AdvaMed, one of the medical device industry’s largest trade groups, reiterated its opposition to broad-based tariffs Wednesday. After the Trump administration announced new duties on most U.S. trading partners, the group said the actions would hurt innovation, cost jobs, and increase healthcare costs.

“The medtech industry should be exempted from these tariffs,” CEO Scott Whitaker said.

President Donald Trump, speaking in President Donald Trump, speaking in the White House’s Rose Garden, said the U.S. would impose a baseline tariff of 10% on most U.S. imports and higher “reciprocal” rates on specific countries to address trade imbalances but exempted some goods, including pharmaceuticals.f barriers deprive U.S. manufacturers of reciprocal access to markets and called out India for imposing “uniquely burdensome and/or duplicative testing and certification requirements” in sectors including medical devices that make it difficult for U.S. companies to sell their products in the country.

Whitaker said AdvaMed would continue “conversations with the White House” to help the administration understand medtech’s role in the healthcare ecosystem, patient value, and impact on U.S. economic growth. 

“Historically, industries with a meaningful humanitarian mission have been exempted from broad tariffs,” he said, “and as a result, we have seen no to low tariffs on medtech from all key trading partners.”

Meanwhile, providers have been bracing for the impact of tariffs after the American Hospital Association and the Healthcare Distribution Alliance failed to secure carve-outs for critical medical supplies despite months of lobbying.

In a Wednesday report, J.P. Morgan analyst Robbie Marcus said tariffs that would most affect medtech firms include a planned 20% import tax on the European Union, 24% on Malaysia, and 10% on Costa Rica, with the 34% rate on China having some impact.

Previously announced 25% tariffs on Canada and Mexico are also set to start. However, Marcus said those rates likely would not apply to most medtech goods, which fall under the United States-Mexico-Canada Agreement.

According to Marcus, USMCA compliance is positive for device makers such as Intuitive Surgical, Haemonetics, Conmed, Enovis, and Merit Medical Systems, which have significant Mexico or Canada manufacturing exposure. 

Needham analyst Mike Matson said it is difficult to quantify device makers’ tariff exposure from their public disclosures, but many could be less affected than companies in other sectors due to their considerable manufacturing in the U.S. 

“Despite this, we believe that nearly every medtech company relies to some degree on raw materials and/or components (such as semiconductor chips) that are sourced from outside the U.S.,” Matson said Thursday in a note to clients.

The MDMA, an industry group for device manufacturers, declined to comment on the new tariffs.

Tariffs could drive up the cost of providing care at hospitals and health systems by at least 15%, according to a February survey of 200 healthcare professionals conducted by Black Book Research. 

Ninety percent of surveyed hospital finance executives said they would shift increased costs to insurers and patients, leading to higher service charges. 

Ned Hux, pharmaceutical and life sciences tax leader at PwC U.S., emailed Healthcare Dive to say that tariffs will “almost certainly” pressure healthcare providers through heightened costs for drugs, diagnostics, and medical equipment.

“For providers, this isn’t just a pricing issue—it’s an operational one,” Hux said over email. “Increased cost volatility could constrain formularies, complicate long-term procurement strategies, and reduce flexibility in managing patient care.”

The analyst said the impact could be more severe if tariffs are administered alongside a broader shift in economic policy that targets European trading partners, such as Ireland, which plays a key role in pharmaceutical manufacturing.

“Healthcare providers could find themselves on the front lines of a global policy shift,” Hux added, “with real implications for cost of care and delivery efficiency.”

This grim prediction is based on an outlook from Fitch Ratings from February, which said tariffs would significantly impact providers if the Trump administration chose to alter trade relations with European allies.