On 2 April 2025, President Trump introduced “reciprocal tariffs” on multiple countries, setting a baseline tariff of at least 10%. However, several nations faced much steeper rates, including 49% for Cambodia, 46% for Vietnam and 20% for the EU. One week later, on 9 April, Trump implemented a 90-day delay on certain tariffs but simultaneously increased tariffs on China to 125%. These US tariff measures could significantly influence medtech investment, with both potential benefits and drawbacks.
Despite the 90-day pause, 10% baseline tariffs remain in place for most US trading partners. This may result in higher costs for both imported components as well as entire devices. Many medtech products rely on global supply chains: components such as sensors, chips, plastics and metals are often sourced from abroad. Tariffs will increase the cost of these imports, which raises production costs for US-based medtech firms and makes it harder for startups to scale or even get off the ground. Ultimately, this may discourage firms from investing in US production if they depend on imported materials.
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Cost increases are not the only impacts from the tariffs. They can also disrupt supply chains by creating uncertainty and delays, especially if other countries retaliate. This could again discourage long-term investments in medtech.
Retaliatory tariffs from other nations or trading blocs such as China or the EU can also harm US exports of medical devices. This can limit revenue potential, which in turn reduces capital inflows and makes US medtech companies less attractive to investors. A downturn in medtech investments will be significant: according to GlobalData’s Deals database, in 2024, the US recorded the highest investment value and volume in the sector, indicating its dominance in the market. In 2023, the country attracted $290 billion in capital investment.
The uncertainty around trade policy and the constant threat of new tariffs creates an unstable environment for investors, who may delay funding until there is more clarity. However, despite the potential negative implications of the US tariffs, there may be a silver lining. If tariffs target foreign-made devices, they may protect or boost US-made medtech firms that manufacture devices domestically. This could incentivise investment in US production facilities and attract venture capital interest in companies offering US-based alternatives.
Additionally, government incentives may follow tariffs. Sometimes tariffs are a part of a broader industrial policy that includes tax credits, grants or research and development funding. At this point, it is unclear whether or not the US government will implement such incentives, but if they did, investors could see opportunities in early-stage US medtech manufacturing and companies aligned with reshoring efforts.
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By GlobalDataAt the same time, the investment risk will vary from one therapeutic area to another. Within surgical devices, tariffs on metal components or advanced sensors could raise costs, and retaliation might limit exports of high-margin US surgical robotics. If there is a push to reshore production, some investors might bet on domestic contract manufacturers or US-based startups focused on next-gen robotics.
On the other hand, many wearables and remote patient monitoring devices are manufactured in Asia — specifically in China, Taiwan and Malaysia. Tariffs on electronics or batteries will result in higher costs or supply chain shifts. Larger firms might absorb the cost, but for startups or smaller original equipment manufacturers, tariffs are a serious scale risk. Tariffs in this therapy area could increase investor preference for software-first medtech or US-based assembly.
The full implications of the US government’s tariffs are still unknown for the medtech sector. The uncertainty and potential for increased costs will likely result in short-term caution and delays in funding from investors. In the long term, if paired with pro-manufacturing policies, tariffs might re-localise medtech production, potentially sparking new investment in US supply chains and startups.
