U.S. iodine contrast supply may not be subject to proposed 25% tariffs
The Trump administration is considering a 25% tariff on pharmaceuticals imported from Ireland, but such a move could potentially impact the price for X-ray iodine contrast agents in the U.S., but it depends what rules are applied.
Pharmaceuticals are currently exempt under tariffs the Trump administration has put in place. But the administration is mulling the idea of a pharmaceutical specific tariff against Ireland, because of the administration claims the country is taking away U.S. drug manufacturing jobs. GE Healthcare has one of its primary iodine contrast fill plants in Ireland, but its operations might not be impacted under current rules.
Currently, if tariffs were to be applied to pharmaceuticals, as is the case with Chinese imports, it would only apply to the active pharmaceutical ingredient (API) country of origin. This is the case with Chinese-sourced APIs, on which tariffs went into effect in 2018, and new tariffs were added Feb. 4, 2025.
The iodine contrast used in the U.S. has API iodine that is often manufactured in one country, packaged in another and then imported by suppliers Bracco, Guebet and GE Healthcare.
GE is the largest supplier of iodine-based imaging contrast in the United States. When its main Shanghai, China, factory went offline during a COVID-19 shutdown in 2022, contrast in the U.S. was rationed and noncritical imaging exams and procedures were canceled across the country. In February, GE told Radiology Business it did not expect to see price increases from tariffs put on Chinese imports, because its iodine API does not originate in China. But GE said it could shift supply to the U.S. from its contrast factory in Ireland. GE also said it had made significant investments to expand its Irish contrast production facility to supply the U.S. and prevent shortages like those seen in 2022.
Under current tariff rules, GE's iodine supply packaged in Ireland is sourced elsewhere, so a pharmaceutical tariff on Ireland may not apply, unless the rules are changed.
“Tariffs continue to be a dynamic issue, which we are monitoring closely," GE HealthCare replied when asked how tariffs may impact contrast supply. "Currently, contrast media and radiopharmaceuticals aren’t subject to reciprocal tariffs, and there have been no related price increases. Where we see tariff impact, our first priority is to implement efficiencies in our supply chain and operations wherever possible."
GE earnings note impacts from tariffs
GE HealthCare did not include any information about specific impacts from tariffs on its contrast business in its Q1 earning report released April 30. But, the company noted other ways tariffs are impacting its imaging equipment business.
"We are expecting a more significant impact from tariffs in the second half of 2025," said Chief Financial Officer Jay Saccaro.
The impact of tariffs on GE has been relatively small, around $10 million, but Saccaro said this will become much more "dramatic" later this year, with estimates of $100 million in the second quarter, and about $200 million in Q3 and Q4.
"We estimate the incremental tariffs announced since February will negatively impact adjusted earnings before interest and taxes (EBIT) by approximately $475 million," Saccaro said.
Moving production to the U.S.
While GE HealthCare did not outline plans to move iodine contrast production to the U.S., the company said during its earnings call it is considering moving some of its imaging system production elsewhere.
GE said its global footprint includes 43 manufacturing sites across 17 countries. It also is the largest producer of imaging systems in the U.S.
"We have moved swiftly on tariffs and have taken responsible and sustainable actions to mitigate over 50% of our gross exposure," CEO Peter J. Arduini said during the earnings call.
The constantly changing U.S. tariff policy has made companies, including GE, hesitant about making expensive moves in its supply chain. And even is considered, such changes will take time to implement.
"We obviously want to see how the tariff matrix plays out around the world, because you don't want to initiate a move until you actually understand what that rate might look like, where you would move to another country. We already make a lot of the same products in different countries, so we could throttle down production in one country and throttle up in another. We are already in the middle of doing that in our vascular imaging business, molecular imaging business and our CT business," Arduini said.
Dave Fornell has covered healthcare for more than 17 years, with a focus in cardiology and radiology. Fornell is a 5-time winner of a Jesse H. Neal Award, the most prestigious editorial honors in the field of specialized journalism. The wins included best technical content, best use of social media and best COVID-19 coverage. Fornell was also a three-time Neal finalist for best range of work by a single author. He produces more than 100 editorial videos each year, most of them interviews with key opinion leaders in medicine. He also writes technical articles, covers key trends, conducts video hospital site visits, and is very involved with social media. E-mail: [email protected]