U.S. medical device companies are starting to feel the financial pressure from the current imposed tariffs, with Baxter International and GE Healthcare reporting millions in projected costs.
Here are four things to know:
- Baxter International expects to absorb $60 million to $70 million in tariff-related costs this year, most of them in the second half of 2025, CFO Joel Grade told the Chicago Tribune.
While most of Baxter’s U.S. sales come from products made domestically, international supply chains make the company vulnerable to the imposed tariffs. Though only a small percentage of Baxter’s total sales are in China, the 145% levy enacted is responsible for almost 50% of Baxter’s total tariff burden.
“Given the magnitude of the tariffs that have been enacted between the two countries, these tariffs now account for nearly half of the total impact,” he said. - To manage tariff effects, Baxter is considering adjustments to inventory, alternative suppliers and shipping routes. In addition, the company is lobbying for potential exemptions through trade associations.
- In response to the imposed tariffs, medical devicemaker GE Healthcare said it expects the tariffs to cost the company around $500 million in 2025, with about $375 million tied to U.S. and China trade tensions. As a result, the company revised its full-year earnings forecast downward.
- President Donald Trump’s latest tariff policy introduced a 10% baseline tariff on all imports, with China facing a cumulative 245% tariff. Pharmaceutical products are not yet subject to tariffs while the administration investigates their national security implications.
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