EU's Medical Technology Industry Lobby Calls for Exemption of Devices and Diagnostics from Trade Disputes
In a significant development, negotiations between the United States and the European Union (EU) regarding trade tariffs, including on medical devices and diagnostics, are approaching a tentative agreement on a 15% reciprocal tariff rate. This comes as a relief for the medical technology sector, which has been grappling with the threat of higher tariffs that could disrupt the supply and cost of medical technologies.
The tension between the two economic powerhouses has been palpable, with the U.S. threatening significant tariffs on EU exports, including up to 30% on all goods from the EU starting August 1, 2025, unless a trade deal was reached to address tariffs on both sides. This created major uncertainty for sectors like medical devices, given the EU is a primary U.S. export market and vice versa.
In response, the European Commission had considered countermeasures, including potential additional duties on U.S. imports such as medical devices, as part of a large package covering €95 billion in imports under review since May 2025. The U.S. President's prior threats included steep tariffs on pharmaceuticals and medical-related products, which would have severely impacted the medical devices and diagnostics sector.
However, recent developments show progress toward a compromise tariff rate of 15%, a significant de-escalation from the earlier 20%-30% threats, aiming to avoid a full-blown transatlantic trade war. This deal would apply reciprocally to goods traded between the U.S. and EU, stabilizing the environment for medical devices and diagnostics trade.
MedTech Europe, the European counterpart to AdvaMed, has been vocal about the potential impact of tariffs on patient care and the healthcare system. They have urged policymakers to exempt medical technologies from any trade tariffs or export restrictions, echoing similar pleas from AdvaMed. The AdvaMed CEO pleaded for tariff relief in a Senate hearing on May 14, 2025.
The draft list of products includes over 800 trade codes related to medical technologies, covering finished goods as well as a variety of core components necessary for the functioning of medical devices and diagnostics. Replacing components is not a simple option in some cases, and in others, no alternative may exist. These disruptions could create ripple effects throughout the healthcare system.
Negotiators have until July 9 to reach an agreement or extend talks, after which the U.S. may reimpose tariffs at a higher rate. Where substitutes are possible, the process of revalidation is lengthy and resource-intensive to ensure the same high standards and safety are met. MedTech Europe warns that companies may struggle to adapt their supply chains before patient care is affected.
The trade group also calls for medical technologies to be covered by a zero-for-zero policy on trade between the U.S. and European Union. The status of international trade actions related to tariffs on medical devices and diagnostics is being closely monitored by Philip Neuffer and Edwin Lopez.
While this potential agreement is a step in the right direction, it is important to note that the situation remains dynamic and pending official ratification and detailed sectoral implementations. A potential reimposition of tariffs at a higher rate could trigger retaliatory measures from the EU, which MedTech Europe wants to avoid. Delays in reaching a trade agreement or extending talks could lead to increased tariffs and potential disruptions to the supply and cost of medical technologies.
- The tentative agreement on a 15% reciprocal tariff rate between the United States and the European Union (EU) could offer relief for the healthcare and health-and-wellness industry, as it pertains to medical devices and diagnostics.
- The medical technology sector, including MedTech Europe and AdvaMed, has been actively advocating for exemptions from trade tariffs or export restrictions to maintain patient care and healthcare system stability.
- Negotiations between the U.S. and EU must address over 800 trade codes related to medical technologies, encompassing finished goods and core components essential for the functioning of medical devices and diagnostics.
- Replacing components or finding alternatives may be complex in certain cases, and no alternative may exist for others, potentially leading to ripple effects throughout the healthcare industry.
- As the industry grapples with the potential reimposition of tariffs at a higher rate or trade agreement delays, medtech leaders like Philip Neuffer and Edwin Lopez are closely monitoring international developments to avoid retaliatory measures and potential disruptions to medical technology supply and cost.
- Analytics and AI-powered news outlets are closely following negotiations between the United States and the EU to report on events impacting the medical-conditions sector, finance, and medtech industry.
- While the 15% reciprocal tariff rate agreement represents progress, it is essential to remain vigilant as the situation remains dynamic and subject to official ratification, detailed sectoral implementations, and the potential for increased tariffs and delays resulting in disruptions to the medical technology sector.
