President-elect Donald Trump's plan to impose tariffs on imported goods is expected to affect the prices of approximately 75% of medical devices marketed in the U.S., according to consulting firm GlobalData's Medsource Database, Medical Device Network reported Nov. 22.
Here are four takeaways:
- Around 69% of U.S. marketed medical devices are manufactured solely outside of the U.S., and these devices would be subject to the new tariffs. This could lead to price increases and potential supply chain disruptions.
- The proposed tariffs likely would force companies to raise prices to cover the financial losses incurred from the tariffs. This could also lead to supply shortages, according to the report.
- Companies with heavy reliance on foreign manufacturing, such as South Korea-based L&K Biomed, which produces 100% of its products abroad, are likely to be significantly affected by the tariffs. Companies such as Becton Dickinson, which manufactures a smaller percentage of its products overseas, may face less disruption.
- Mr. Trump's proposal to impose a 60% tariff on all products imported from China would disrupt the supply chain for medical devices. Approximately 13.6% of U.S.-marketed medical devices are manufactured in China, and the tariffs will likely affect these products, according to the report.