Medical devices industry raises concerns over additional 25% US tariff

With US duties on Indian medical devices now at 50%, industry groups warn of trade instability, lost competitiveness, and adverse impact on American patients

India’s medical devices industry has raised concerns after US President Donald Trump on Thursday announced an additional 25 per cent tariff on Indian shipments — on top of the existing 25 per cent duties imposed last month.

 

Calling the US decision to impose a second round of 25 per cent tariffs “short-sighted,” the Medical Technology Association of India (MTaI) said the escalation is numbing for Indian exporters to the US — not only in its economic impact but in its disregard for stability and predictability in global trade.

 

Industry executives fear that the tariff hike may also affect the competitiveness of Indian medical device exporters compared to China and the European Union (EU).

   

“Our market in the US is limited to low-risk devices; however, we are already facing a challenge from China in terms of costs. The new rates are therefore expected to further aggravate the situation,” a senior executive of an Indian device manufacturing company told Business Standard.

 

While the EU has agreed to a 15 per cent tariff duty, the US has proposed a 30 per cent tariff on China. Both are lower than the 50 per cent now imposed on Indian products. 

 

According to data from the Department of Pharmaceuticals (DoP), India’s total medical device exports for 2023–24 (FY24) stood at $3.78 billion till September 2024, of which $287.7 million worth of devices were exported to the US.

 

Endoscopes, orthopaedic implants, magnetic resonance imaging (MRI) equipment, urinary catheters, and electrocardiographs are among the top five exports to the US from India.

 

Rajiv Nath, forum coordinator at the Association of Indian Medical Device Industry (AIMED), however, said it would be premature to comment on US–India tariffs until an official announcement is made regarding tariff rates for China.

 

“If duties by the US on Indian medical devices are 15 to 20 per cent lower than US tariffs on China, exports could rise if manufacturers find it feasible to absorb FDA approval costs and deem these export costs sustainable,” he added.

 

MTaI added that the move is also likely to harm American patients, particularly in critical sectors like medical devices and pharmaceuticals, where global supply chains are deeply integrated.