Medical Manufacturers And Tariffs: Where Things Stand Today

We often discuss tariff impact in terms of steel and aluminum, semiconductors and electronics. But they’re also rapidly shaping the way life-saving products are made and moved around the world. Medical manufacturing is a global game—from pharmaceutical ingredients to pacemakers to the gloves and gowns worn in operating rooms.

For manufacturers in the space, that’s no revelation—the pandemic taught us just how vulnerable the healthcare industry is to a fractured global supply chain. That means it’s also sensitive to shifting trade policy.

It’s not as easy as declaring that tariffs are “good” or “bad” for medical manufacturers, as is the case in most industries. The impact is complex. Let’s explore how different corners of the industry—pharma, devices, and personal protective equipment—have been impacted by tariffs so far, what could be coming down the line, and how companies are reacting.

The Tariff Impact On Pharmaceuticals

In January, President Trump announced plans to bring a 25% tariff to pharmaceuticals, a move that would end a decades-long tariff exemption for the drug industry. But months later, and after the White House’s investigations into the national security implications of such a measure concluded, still no tariffs have come to fruition.

As they await further developments, drugmakers have responded in a variety of ways. Several major companies have announced plans to bring some operations back to the U.S., “including Eli Lilly, Roche, and Novartis, [who]

have committed to investing a combined $100 billion over the next five years,” as the Association of American Medical Colleges (AAMC) reported.

Others have been hustling to stock their shelves with the ingredients they need before prices go back up. Imports surged earlier this year, with March seeing a year-over-year increase of 160% to $50.2 billion. However, the trend cooled significantly in April, as pharma imports dropped back down to $24.2 billion. Experts told Axios the decrease could be due to an inventory bubble created with the earlier import rush, which is “putting pressure on the companies to sell their products before they expire.”

The Tariff Impact On Medical Devices

While drugmakers remain exempt from tariffs for the time being, the same can’t be said for medical devices. The industry enjoyed a carve out from tariffs during the first Trump administration—not so in 2025.

Several prominent industry players are pushing for a reprieve they say is necessary to maintain status quo when it comes to supplies for hospitals. The American Health Association has said tariffs “could have significant implications for healthcare,” and that an AHA data blockysis “found that the United States had imported over $75 billion in medical devices and supplies in 2024. Among the imports were syringes, blood pressure cuffs, IV saline bags, and surgical tools,” AAMC reported.

Most medical device manufacturers source from across the globe for the various parts they need. While the current 90-day tariff delay struck with China has pushed off financial implications for now, companies are sizing up a likely significant impact on the bottom line should higher tariffs return. Johnson & Johnson’s MedTech division, which produces orthopedic and cardiac implants, expects to face a $400 million headwind due to duties on Chinese imports, the company has said. The company’s CEO, Joaquin Daoto, says that it’s tax policy, rather than tariffs, that would be “the most effective” way to bring medical manufacturing back to the U.S.

The Tariff Impact On Personal Protective Equipment

The impact on PPE has been more immediate and visible. The industry has been subject to a variety of tariffs since May 2024, when the Biden administration announced a Chinese import tax on goods like surgical masks, medical gloves, and isolation gowns. The tariffs generally range from 7.5% to 25%, depending on the item. Syringes and needles are subject to a 100% levy.

These measures aim to build a more resilient healthcare ecosystem in the wake of the pandemic. But about half of all PPE still comes from China, blockysts have said, so American PPE manufacturers have welcomed with open arms the additional tariffs on Chinese goods. “In our case, successive administrations — both Republic and Democratic — have recognized that these products are not competing on a level playing field,” American Medical Manufacturers Association CEO Eric Axel, whose organization represents PPE makers, told NBC News.

The Future For Medical Manufacturers

Tariffs are reshaping medical manufacturing, but the effects vary widely across sectors. Pharma companies are in a holding pattern, unsure whether longstanding exemptions will hold under the Trump administration. Device makers face mounting cost pressures, while PPE suppliers have enjoyed additional help against Chinese companies who have a leg up when it comes to production cost. All three sectors know that as the Trump administration considers further policy, and as the administration’s trade talks with China progress, things could change in a hurry.

What’s clear in the meantime is that no company can afford to stand still. Tariffs are adding complexity to a challenging supply chain environment, and manufacturers must rethink their sourcing strategies, pricing models, and contingency plans. Trade policy will continue to evolve—but it’s vital that we improve long-term resiliency in the world of medical manufacturing.