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,
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 analysis “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.