Tariffs Threaten US Medical Technology Industry's Decade-Long Growth Spurt

President Donald Trump's goal of increasing American manufacturing and reducing reliance on foreign adversaries has been met with concerns about the impact of tariffs on the medical technology industry. The industry generates over $250 billion annually, supports nearly 3 million jobs, and produces more than 70% of the medical technology used domestically. Tariffs on imported components could raise production costs, squeeze healthcare providers, and divert investment from innovation.

The Federal Reserve has reported that core goods inflation accelerated after tariffs increased in 2025, with larger price increases in categories more exposed to tariffs. American companies already export $80 billion of medtech annually, more than automobiles or semiconductors, while investing over $20 billion annually in research and development.

Vance Ginn, Ph.D., president of Ginn Economic Consulting, notes that a stronger manufacturing agenda would address why businesses choose to invest here. He suggests keeping taxes low, reducing unnecessary regulation, accelerating permitting, producing abundant energy, protecting intellectual property, and expanding access to foreign markets. This approach could make domestic manufacturing more competitive, not less.