Medtech giants brace for tariff shocks as earnings season begins

USA – As earnings season kicks off, medtech investors are tuning in to hear how leading healthcare technology firms like GE Healthcare, Intuitive Surgical, and Medtronic are planning to manage the ongoing effects of President Donald Trump’s evolving trade and tariff policies.

With tariffs rising and trade tensions between the U.S. and China intensifying, the financial outlook for medical device manufacturers has come under fresh scrutiny.

Stock values of major players in the medtech space have already felt the heat, reflecting investor concerns about supply chain disruptions, higher operational costs, and a complex regulatory environment.

Last week, more than 20 U.S. companies, including GE Healthcare and Medtronic, attended a roundtable meeting with China’s Ministry of Commerce to discuss the challenges brought on by the tariffs.

In particular, attention is now turning to how these companies might adjust their manufacturing footprints to reduce their exposure to global trade risks.

According to Morningstar analyst Debbie Wang, tariffs are expected to be a key topic on this quarter’s earnings calls.

“Companies may reveal plans to shift production to other regions or explore other cost-saving strategies to minimize the damage,” she said via email.

A spokesperson from GE Healthcare told MedTech Dive that the company will provide updates on tariffs during its upcoming earnings call.

In February, GE noted that its 2025 financial projections included a 10 basis point impact from China tariffs.

“Our teams are actively exploring mitigation strategies as the global trade environment continues to change,” the spokesperson said.

“Ensuring uninterrupted delivery of products and services to our patients and customers is our top priority, along with maintaining quality and managing costs effectively.”

Adding to the complexity, China recently launched an anti-dumping investigation into X-ray tubes imported from the U.S. and India, a key component in CT scan equipment.

However, GE has downplayed the potential threat, stating it does not view the probe as a material risk to its China operations.

Meanwhile, Medtronic confirmed it is closely monitoring global tariff trends. The company said it would “continue to assess any impacts and introduce mitigation efforts if needed.”

Further uncertainty came last week when President Trump unexpectedly paused most reciprocal tariffs for 90 days, a shift from his earlier stance of imposing steep duties on imports.

Despite this pause, analysts caution that the break is temporary, and long-term clarity on trade policy is still lacking.