US medical device makers decline after reciprocal tariffs on China, Mexico

Shares of U.S. medical device makers fall after President Donald Trump imposed an additional 34% tariff on China, 20% tariff on EU and 25% tariff for some goods from Canada and Mexico

Tariffs imposed on these geographies could hurt R&D spending, availability of certain devices and cause supply chain disruptions for these device manufacturers, Citi analysts wrote in a note

GE Healthcare GEHC.O and glucose monitor manufacturer Dexcom DXCM.O decline more than 9% each, Insulet Corp PODD.O fall about 7%

Some firms such as Boston Scientific BSX.N and GEHC have accounted for impact of tariffs in their fiscal 2025 outlook, while others such as Abbott ABT.N and DXCM have not

Shares of medical device firms Boston Scientific BSX.N down 1.7%, Stryker Corp SYK.N and Intuitive Surgical ISRG.O fall nearly 3%, and Baxter International BAX.N decline over 5%

"In the short term, it seems likely the impacts from tariffs will be felt more in 2026 than in 2025 as companies work through inventory already in the U.S.", Brokerage J.P.Morgan says

As of last close, ABT up ~17%, BSX up 12% and GEHC up 1.5%, DXCM down 12.4%, SYK up 2.8%, PODD down 4.5%, ISRG down 5.1%, while BAX up 9% YTD

As of last close, S&P 500 Health Care Equipment sub-index .SPLRCMED is up 5.4% so far this year