India’s medical devices industry is reeling after US President Donald Trump slapped a second round of tariffs, another 25%, on Indian exports on August 7, taking the total import duty to 50%. Just last month, a similar 25% tariff was introduced, and the latest hike has caught the industry off guard.
The Medical Technology Association of India (MTaI) called the move “short-sighted”, saying it undermines predictability in global trade. More importantly, the association warned that the increased cost burden may hurt American patients too, as medical devices are tightly linked with global supply chains.
Compared to India, the US tariff stance towards other large exporters seems less aggressive. China faces a 30% duty, while the European Union has reportedly agreed to a 15% tariff. India now finds itself stuck with the highest slab—50%—raising concerns about fairness and competitiveness in global trade norms.
Industry insiders say this tariff hike could make Indian-made medical devices less appealing to American importers, especially since India’s exports to the US are largely in the low-risk, cost-sensitive segment.
“We are already dealing with Chinese price pressures,” said an industry executive, pointing out that margins are already thin.
According to data from the Department of Pharmaceuticals, India exported medical devices worth $3.78 billion between April and September in FY24. Out of this, exports to the US amounted to $287.7 million. Top products shipped to the US include endoscopes, orthopaedic implants, MRI equipment, urinary catheters and ECG machines.
While the US is not the largest market for Indian medical devices, the country remains a strategic destination, especially for companies trying to move up the value chain. The current tariff regime, many fear, could discourage this progress and keep Indian players locked into low-margin categories.
The broader concern is about stability. Frequent changes in tariff rules are unsettling for exporters who plan logistics, costs and compliance over long horizons. MTaI flagged this unpredictability as a key worry.
