Tariffs will likely have a sizable impact on major radiology vendors
Medical imaging vendors Siemens Healthineers, Philips Healthcare and GE HealthCare all saw double-digit percentage drops in their stock prices immediately after President Donald Trump announced new tariffs April 2. The bottom lines for these vendors also are likely to see impacts, since all three have at least part of their supply chain or manufacturing outside of the U.S.
Siemens has a manufacturing plant in Mexico for its Varian product line, and it produces some of its imaging systems in Germany. GE HealthCare manufactures some imaging system components and complete imaging systems in Mexico. Additionally, GE's iodine contrast agents are produced in both China and Ireland. Netherlands-based Philips also has at least some of its manufacturing in Europe. None of these vendors were willing to disclose exactly where their imaging systems and components come from.
While tariffs are expected to raise costs for all types of healthcare technologies and imaging systems these vendors produce, none would offer specifics on the impact or course of action they're taking in response. All three told Radiology Business they'd have more to share after their first quarter 2025 earnings calls, which take place April 30 for GEHC, May 6 for Philips and May 7 for Siemens Healthineers.
"These [tariffs] are significant measures. It will take us some time to work through the potential implications for us as a company," Siemens said in a statement sent to Radiology Business. "The past few months have shown that the situation will likely stay volatile. With respect to the supply chain and manufacturing, we are constantly evaluating our supply chains and manufacturing base. Such decisions depend on many factors, and tariffs are one of them."
On April 2, Trump signed an executive order imposing minimum 10% tariffs on all U.S. imports effective April 5. Higher tariffs of 11% to 50% were imposed on imports from 57 countries April 9, but then suspended for 90 days. However, the 10% tariffs remain in effect for all countries.
The impact of a 10% tariff on an imported higher-end computed tomography (CT) scanner or magnetic resonance imaging (MRI) system priced between $1 million to $2 million would cost hospitals an additional $100,000–$200,000 more, compared to the same scanner imported prior to April. With hospitals already tightening belts and looking at cost cutting measures, these significant price increases may prompt some to pause large capital investments.
China has been impacted by even higher tariffs. Trump placed a 20% tariff on Chinese goods prior to April, and on April 9 issued an executive order updating the tariff on Chinese goods another 125%, for a total 145%. There are growing concerns these high tariffs will negatively impact healthcare by greatly increasing prices for everything from large quantities of hospital disposables to drugs and high-tech components from imaging systems.
Some Chinese imaging companies have already moved some manufacturing to the U.S. in recent years due to previous tariffs.
Stock market prices drop for major imaging system vendors
All three vendors experienced double-digit percentage drops in stock prices immediately following April 2, which have not fully recovered their value in three weeks since.
Siemens Healthineers' stock was at $27.13 April 2, but dropped as low as $23.59 April 9. The stock price has since rebounded to $25.22 as of Monday. The five-year low for the stock was during the pandemic when it reached $17.58 in March 2020.
Philips' stock dropped from $23.82 to a low of $19.47 a couple days later. Prices closed Monday at $23.30. According to Phillips Healthcare analyst consensus estimates as of April 9, the company was in negative sales growth territory in the first quarter of 2025.
GE HealthCare stock was averaging about $80 per share in the weeks prior to April 3, but then dropped to a low of $60.51 by April 4. As of Monday, the price was $60.48 a share. This is the lowest for GE's stock since the pandemic hit the stock market. The price of GEHC stock in December 2022 was $56.74.
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]