Hospitals and medical device manufacturers face mounting uncertainty as President Donald Trump's escalating tariffs threaten the availability and affordability of life-saving technologies, including groundbreaking CT scanners, The Washington Post reported.
At a Siemens Healthineers factory in Bavaria's renowned "das Medical Valley," workers meticulously assemble the Naeotom Alpha, a cutting-edge CT scanner described as revolutionary for its unmatched image clarity. The scanner, developed over two decades, captures precise details of patients' hearts, lungs, and brains with unprecedented accuracy.
"The image quality is incomparable," said Jesús Fernández, head of CT product marketing at Siemens Healthineers, likening the technological advancement to the leap from 1970s television to HDTV.
Since its FDA approval four years ago — hailed as "the first major new technology for computed tomography imaging in nearly a decade" — leading U.S. institutions like the Mayo Clinic, NYU, and Duke University have eagerly adopted the Naeotom Alpha. Today, 40% of these scanners are exported to the United States, underscoring America's crucial role in Siemens' market.
However, Trump's recent threats of significant tariffs on European imports — including a possible 50% levy effective July 9 — have cast uncertainty over the global medical technology industry. Initially, Trump targeted European imports with a 20% tariff, briefly pausing it at a reduced 10% before escalating tensions.
The medical device sector, encompassing simple syringes to robotic surgical systems, is especially vulnerable due to intricate global supply chains. High-end devices, including those from American manufacturers like GE and Philips, often rely heavily on international components.
Siemens Healthineers, already contending with geopolitical volatility, acknowledged potential disruptions. Jochen Schmitz, Siemens Healthineers' chief financial officer, warned analysts recently that tariffs would primarily affect U.S. imports from Europe, negatively impacting profitability.
American healthcare leaders echo these concerns. Scott Whitaker, CEO of AdvaMed, emphasized, "It will have a negative impact on innovation, cost jobs, and increase overall costs to the health care system." Hospitals, already facing tight budgets, anticipate heightened expenses; a Bank of America survey revealed that 91% of responding hospital financial officers expect increased equipment costs due to tariffs.
Furthermore, complex medical technology like the Naeotom Alpha — which employs advanced photon-counting detectors using cadmium telluride crystals — cannot easily shift production locations. Siemens emphasizes the necessity of global scale and centralized manufacturing, ruling out relocating assembly.
"We need that global scale," said Matthias Kraemer, head of corporate communications at Siemens Healthineers, noting smaller factories abroad are economically unviable.
American hospitals are wary of cost increases and fear delays in upgrading or maintaining essential equipment. Akin Demehin of the American Hospital Association highlighted the risks: "To the extent that those get caught up in overseas supplies and tariffs impact their availability and price, that can potentially impact what the maintenance of those machines looks like."
Ultimately, as Trump's tariff decisions unfold, hospitals and patients brace for the ripple effects on healthcare delivery, underscoring the deep interconnection between international trade policies and medical innovation.
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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