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On October 10, US President Donald Trump and China’s President Xi Jinpi will resume trade tariff talks


By Kamaljit Behera, Transformational Health Senior Industry Analyst

As the U.S.-China tariff war continues to escalate, the Transformational Healthcare team at global research firm Frost & Sullivan has made available an insight analysis exploring the threats and opportunities for US businesses in China. The insight analysis also examines the timeline and causes of the tariff war and why medical technology is included in the United States’ new tariff policy.

The United States is the world’s largest medical technology importer, and China is its fourth-largest supplier. The tariff war is anticipated to create a ripple effect that will impact healthcare systems as costs rise. Frost & Sullivan analysis suggests that manufacturers may absorb the costs for high-value medical devices, such as MRI and CT machines, passing some of those costs on to hospitals. For low-end products, especially consumables, customers will end up paying more. The tariffs increase on MedTech and supplies, plus the duties on imported steel and aluminum, are expected to result in $600 million-$800 million of increased costs for the healthcare industry and U.S. patients.

To help understand the threats and the opportunities for U.S. businesses in China, the Frost & Sullivan Transformational Healthcare team has provided a complimentary insight, US-China Tariff War Implications for the Healthcare Industry: http://frost.ly/3sc.

As a consequence of the U.S. tariffs on China, other low-cost manufacturing destinations such as Malaysia, Vietnam, and Costa Rica will see a moderate increase in manufacturing activity with some companies expected to shift operations to these destinations. However, it is critical for U.S. MedTech OEMs to evaluate the total cost of ownership as they examine alternative sourcing destinations.

Key benefits:

  • Better understand the timeline of the tariff war and what triggered the battle.
  • Gain insight into why the United States included the medical technology category under the new tariff regime.
  • Learn about implications for the medical imaging, medical devices and diagnostics industries and the ripple effect for healthcare systems.
  • Leverage scenario analysis and next right-shoring alternatives.

For further information on this analysis, please contact myfrost@frost.com

About Mariana Fernandez

Mariana FernandezMariana Fernandez serves as the Senior Corporate Communications Executive with +10 years of expertise. She covers key industries such as Healthcare, ICT, Automotive, Finance, and Aerospace, Defense and Security.

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