President Trump has been vocal about prioritizing the growth of U.S. companies and citizens since his campaigning days. The President has raised the “Make America Great Again” or MAGA slogan, which has been a key driver in his electoral success last year. One of the major actions taken by Trump as part of his MAGA movement is to bring manufacturing jobs back to the United States by raising tariffs. Trade policies under MAGA emphasize tariffs on China, Mexico, Canada, and other countries, as well as renegotiating agreements like the USMCA to favor American businesses.
However, President Trump’s tariff policies are set to significantly impact Medical Device companies that rely on offshore manufacturing and global sales. With approximately 75% of U.S.-marketed medical devices being produced abroad, tariffs will increase costs, forcing companies to either absorb losses or pass them on to consumers, thereby raising healthcare expenses.
Supply chain disruptions are another major consequence. Companies that manufacture their products overseas, like Intuitive Surgical’s dependence on Mexico, will face severe financial strain, while those with minimal offshore production, like Becton Dickinson, may have a competitive edge. Additionally, specific categories such as hospital supplies, diagnostic imaging, and respiratory devices — commonly imported — are likely to experience price hikes and supply shortages.
Further complicating matters, Trump’s proposed 60% tariffs on Chinese imports will directly impact a siginifcant chunk of of U.S.-marketed medical devices. Companies operating in China have already adapted to prior tariffs, but those with heavy investments in Mexico and Canada now face new risks. Retaliatory tariffs from affected countries could also dampen international sales.
Zacks Investment Research
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Amid the rising risk of a tariff war, we expect the performance of Medical Device companies to be volatile. The major impact of tariffs is likely to be reflected in the results of the companies during the second half of 2025. Hence, here we have discussed three companies — Stryker SYK, Medtronic MDT and Insulet Corporation PODD — to watch that are likely to stabilize despite a raised tariff. Also, these companies have favorable Zacks Rank, implying upside prospects this year.
Stryker has a manufacturing facility in Mexico, but with a network of 40 plants globally, its dependency on any single facility is minimal. The possibility of new tariffs on imports from Mexico and Canada raises questions about cost implications for U.S. businesses, particularly those relying on cross-border supply chains. However, SYK’s ability to shift production or absorb cost fluctuations ensures that tariffs, if enacted, will have a limited impact on its overall operations.
Meanwhile, the international markets accounted for approximately 24% of Stryker’s total revenues during the fourth quarter, with strong growth in Canada, Europe and emerging markets. However, unlike companies that rely heavily on international sales, Stryker’s primary market remains the United States, ensuring that any tariff-related disruptions from Canada and Mexico will have a marginal impact on its overall revenue stream.
SYK is actively monitoring tariff discussions but does not anticipate a material financial impact. The company’s ability to navigate pricing pressures, optimize supply chains, and maintain strong U.S. sales growth positions it well for sustained performance.
Stryker shares have gained 4.2% so far this year. The company currently carries a Zacks Rank #3 (Hold), with a Zacks Style Score of B, implying upside momentum to continue in its share price.
Medtronic, a global leader in medical technology, has strategically positioned its manufacturing operations to minimize exposure to potential U.S. tariffs on imported medical devices. The company maintains a robust global supply chain while ensuring that a significant portion of its production remains within the United States. This strategic approach allows it to navigate trade uncertainties effectively, reducing the potential impact of tariffs on its cost structure and overall financial outlook. The company has also been expanding and optimizing its U.S.-based manufacturing facilities, reinforcing its commitment to domestic production while leveraging cost efficiencies. By maintaining multiple production hubs across different regions, Medtronic retains the flexibility to adjust its supply chain to mitigate any adverse effects of trade restrictions.
Another key factor that shields Medtronic from tariff risks is its dominant position in the U.S. healthcare market, where majority of its sales are generated. This ensures a stable revenue base, largely independent of international trade disruptions. For international sales, even in cases where tariffs may be imposed on imports from Mexico or Canada, Medtronic’s diverse manufacturing footprint allows it to adapt quickly. In addition, the company has reported strong growth in emerging markets such as Japan, India, and Eastern Europe, further diversifying its revenue streams and reducing over-reliance on any single trade region.
Overall, tariffs are unlikely to have a significant negative effect on Medtronic’s financial outlook, making it a resilient and stable investment prospect despite potential trade uncertainties.
MDT currently carries a Zacks Rank of 3, with a Zacks Style Score of A, implying a cheap valuation with strong growth prospects. The company’s shares have gained 16.7% so far this year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Medtronic PLC Price
Medtronic PLC Price
Medtronic PLC price | Medtronic PLC Quote
Insulet Corporation’s robust expansion into international markets, combined with its significant U.S. presence, has positioned it well for sustained revenue growth. However, the imposition of new U.S. tariffs raises concerns about potential cost pressures, supply chain disruptions, and manufacturing efficiencies. Insulet has downplayed any material impact from tariffs in its 2025 outlook. For now, the company has guided for gross margin stability at approximately 70.5% in 2025, signaling confidence that its supply chain efficiencies will offset any tariff headwinds.
A key advantage for Insulet in mitigating tariff-related risks is its globally diversified manufacturing footprint. The company operates production facilities in the United States, China and Malaysia, which provides resilience against geopolitical and trade uncertainties. This diversified approach allows Insulet to shift production between regions, optimizing costs and avoiding overreliance on a single market. In particular, the Malaysia facility, which is set to become slightly accretive in the second half of 2025, is expected to play a crucial role in countering any tariff-related cost increases by providing lower-cost production capacity in the Asia-Pacific region. Moreover, Insulet’s supply chain strategy is designed to reduce dependency on single-source suppliers by developing regional dual sourcing for key materials. This flexibility enhances its ability to absorb cost fluctuations arising from tariffs, raw material price volatility, or geopolitical instability.
Moreover, PODD generated nearly 25% of its sales from international markets in 2024, with strong international expansion. However, unlike companies that rely heavily on international sales, PODD’s majority market remains the United States, ensuring that any tariff-related disruptions from international markets will have a marginal impact on its overall revenue stream.
PODD currently carries a Zacks Rank #2 (Buy), with a Zacks Style Score of D, implying upside prospects. However, an expensive valuation remains a concern. The company’s shares have declined 1.3% so far this year.
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