He vowed to impose sweeping new tariffs on Inauguration Day, but President Trump has now delayed his tariff plan for Canada, China, and Mexico to Feb. 1.

That may be welcome news for the medtech industry—or not, depending on the outcome of Trump’s decision.

Imposing tariffs on imported goods will affect the prices of approximately 75% of available U.S.-marketed medical devices, which are manufactured out of the country. More specifically, the move—if implemented (sooner or later)—will affect the 69% of available U.S.-marketed devices that are manufactured solely outside the United States, according to Medsource Database, which collates data on the medical device supply chain, by GlobalData, a data and analytics company.

GlobalData estimates the U.S. medical equipment market to be worth $197.8 billion (2023 value) and expects it grow 4.3% annually through 2033 to reach $305.1 billion.

“The tariffs may have negative consequences for a continually growing market due to an aging population and the increasing prevalence of long-term illnesses,” GlobalData Medical Analyst Aidan Robertson said. “Companies will be forced to increase prices to make up for losses incurred by the proposed tariffs. Additionally, this may cause supply chain disruptions, reducing accessibility to medical devices and inflating the cost of these products due to the higher demand in comparison to the supply.”

Trump’s (original) desire to impose 60% tariffs on all Chinese imported products could cause significant supply chain disruptions and will affect approximately 13.6% of the total U.S.-marketed medical devices, which are currently manufactured in China.

Companies that have heavily invested in foreign manufacturing and produce all their products abroad— such as L&K Biomed—are likely to be most affected by these policies, while organizations like Becton Dickinson, which only manufactures an estimated 12% of its products abroad, can expect to be in a more secure position in the U.S. market.

Hospital supplies, diagnostic imaging and anesthesia, and respiratory devices are the most common types of medical devices imported to the United States; therefore, these types of products will likely be significantly impacted.

“While increased tariffs on imported goods could strengthen the U.S. medical device market by promoting domestic production and reducing susceptibility to supply chain disruptions in the long term, the negative effects of applying these tariffs are clear,” Robertson stated. “Ultimately, the economic impact of imposing these increases will lead to a less favorable environment with increased costs, potential supply chain disruptions, and possible retaliatory tariffs from affected countries.”