Trade Tensions Between the EU and China: Implications for American Medical Device Manufacturers
Guillaume Corpart
Among the current global trade tensions, the United States and President Trump’s implementation of tariffs on imports have garnered the most headlines. Although the numbers seem to be constantly in flux, the current tariff rate on Chinese goods stands at 55%, one of the highest rates in the world. European goods entering the U.S. currently face a 10% tariff, though that can vary by good or by country.
Escalating Chinese/EU Tensions
Though it hasn’t generated as much media attention as the U.S. tariffs, a smaller but important tension is also currently happening between the Chinese government and the European Union. This particular spat may have even more significant ramifications for medical device manufacturers.
The issues first began in June 2025, when the European Commission announced that Chinese companies would no longer be able to participate in EU public tenders for medical devices that are worth $5.8 million or more. The rationale for this decision was that European medical device firms did not receive fair access to Chinese markets.
However, instead of encouraging the Chinese to open their markets to more European firms, the decision had the opposite effect. In July 2025, the Chinese essentially reciprocated on the EU with a similar regulation. The Chinese government is now restricted from purchasing medical devices from the European Union that exceed 45 million yuan ($6.3 million) in value.
The Resulting Fallout
What’s interesting about this recent back-and-forth is that it comes at a time when it would be beneficial for the EU and China to be unified in the face of rising tensions with the United States. Instead, the tariffs seem to be having the opposite effect in terms of encouraging similar trade-related behavior elsewhere around the globe.
Though it’s still early in the standoff between China and the EU, tensions still seem to be rising at this point. Thus far, we’ve seen a war of words from both sides of the trade dispute, with few signs that the policies will be changed in the months ahead. China has also escalated the trade war with Europe in other ways, as well, including imposing antidumping taxes on European brandy and threatening or imposing tariffs on pork and dairy products.
What This Means for Device Manufacturers
For medical device firms conducting business and competing for tenders in China and the EU, the implications of this escalating trade war are pretty apparent. EU-based firms doing business in China, and vice versa, are sure to see a major blow to their sales prospects, as they are essentially banned from selling their high-dollar devices in those markets.
The story is different, of course, for non-EU firms doing business in China, or non-Chinese firms competing for tenders in the EU. For these firms, new opportunities in these markets may now exist, particularly for companies that make devices that compete against those of the EU and Chinese firms.
Is There More to Come?
However, there is also the possibility that this is just the opening strike in an escalating global trade war related to medical devices, so companies will certainly want to keep an eye on future developments in the months ahead. It’s certainly no secret that other markets aside from the EU, including Latin America, are wary of China’s impact on their markets, particularly their ability to produce lower-cost versions of medical devices and undercut the competition when it comes to winning tenders. Considering the fact that Latin America imports around 90% of its medical equipment and devices from other countries, any similar moves by Latin American governments could have a major impact on regional markets.
For medical device manufacturers in the United States who are exporting their goods around the globe, the potential future impact of this escalation is even more apparent. With the current ongoing tariff situation, most countries have a sound rationale to get trade retribution of some form on the U.S., whether that’s via reciprocal tariffs on U.S. imports or other measures. If banning medical device manufacturers from competing for tenders in other countries becomes more of a trend than an anomaly, the U.S. could potentially become a target as a result of tariff retribution.
Key Takeaways for Medical Companies
Although a lot of this is simply speculation for the time being, the rising tensions between the EU and China and the resulting fallout for medical device manufacturers in the two regions are certainly a situation worth keeping an eye on, even if it doesn’t directly impact your company or the region where you work right now.
As always, you can prepare yourself for success in the ever-tumultuous global marketplace by relying on GHI and its tools and services to refine your sales approach for the Latin American market. With BrandTrack, for example, you can see which regions are importing more or less of specific products and tailor your strategy accordingly. Even as tensions mount and prices fluctuate, the need for valuable medical devices will remain consistent, so the key is to identify where the need is greatest and be ready to offer your goods and services in those areas.
Next Steps
Contact GHI to learn more about the latest trade tensions and their potential impact on the health care industry in Latin America. Our team of researchers can provide the analysis you need to gain valuable insights to support strategic decision-making in your industry.
