PitchBook Analyst Note: Medtech Tariff Impact Roundup

Medtech faces margin pressure from US tariffs as industry giants look to reshore

Medtech companies are confronting renewed headwinds as US tariffs strain global supply chains, elevate input costs, and increase hurdles for startup expansion. While larger players such as Intuitive Surgical and Johnson & Johnson are making aggressive moves to boost domestic manufacturing, the sector’s heavy reliance on international components limits the industry’s ability to adapt quickly. Startups are particularly vulnerable, facing both rising costs and potential delays in investor funding.

Surgical robotics offers a microcosm of this tension: Intuitive Surgical has warned of significant margin compression due to tariffs, while emerging players such as CMR Surgical, Moon Surgical, and Noah Medical push forward with global expansion despite mounting cost pressure. Health systems—major purchasers of medical equipment—brace for rising costs amid already razor-thin margins, and tariff uncertainty threatens to delay investment plans.