Medical technology in danger: tariffs threaten supply and innovation!

Medical technology in danger: tariffs threaten supply and innovation!

The medical technology industry is currently facing enormous challenges resulting from the tense trade conflict between the USA and the EU. How fundscene.com reports, companies are preparing for further tightening of trading conditions. The consequences are already noticeable: In the first quarter of 2023, imports of medical technology products in Germany increased by a whopping 15 percent compared to the previous year, while imports from the USA even rose by 42 percent.

US medical technology companies are currently filling their warehouses in Europe to prepare for the threat of tariff increases. Jörg Mayer, Managing Director of Spectaris, points out that this increase could be due either to increased stockpiling by customers or to the active actions of US companies. The 10 percent tariffs currently in effect in the USA have already hit German medical technology companies, and US President Donald Trump has announced that he will increase these tariffs to 30 percent.

The effects of customs policy

The medical technology industry is alarmed about the long-term consequences of rising tariffs. How elektroniknet.de reports, over 50 percent of all medical devices rely on semiconductors. Rising tariffs could further increase costs and slow down the industry's innovative strength. Trade Minister Lutnick has also announced new tariffs on semiconductors and pharmaceutical products, which could further aggravate the situation.

In a market that is currently growing by 4.9 percent annually, the mood and the economic conditions are at risk. Small and medium-sized enterprises (SMEs) in particular are struggling to survive because they do not have the resources to set up production facilities in the USA. High tariffs lead to fragmentation of global supply chains and rising production costs, which could ultimately be passed on to hospitals and patients.

The hope for negotiations

In the midst of this tense situation, Jörg Mayer calls for constructive talks between the EU and the US administration. He hopes that the situation will ease, which could alleviate the negative effects of the trade conflicts. BV-Med makes a similar statement, calling for an exemption for medical devices in order to ensure the free movement of goods. Managing Director Dr. Marc-Pierre Möll emphasizes the humanitarian importance of these products.

Donald Trump's trade policy could not only affect European companies, but also destabilize the entire industry in the USA. devicemed.de points out that the planned tariffs on EU imports could rise to up to 20 percent, which would further aggravate the situation. The industry is therefore at a critical point where decisions about the future course are necessary.