Medical Equipment Distributors NAICS 423450

Sep 2, 2025 - Federal Appeals Court Rules Against Trump Administration Tariffs

• The US Court of Appeals for the Federal Circuit has ruled that President Trump overstepped his authority when he declared national emergencies to justify tariffs on many countries. Medical equipment distributors are likely to benefit if the cost of goods imported from countries that were hit with tariffs decrease. US law “bestows significant authority on the president to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax”, the court said in the 7-4 ruling. Many of President Trump’s steep tariffs are “unbounded in scope, amount and duration”, the ruling added, and “assert an expansive authority that is beyond the express limitations” of the law his administration has cited. The court said that the ruling would not take effect until October 14. The Trump administration is expected to appeal the ruling to the US Supreme Court.
• A significant proportion of essential medical goods come from international sources despite efforts to bolster the domestic supply chain, according to the American Hospital Association (AHA). Nearly 70% of medical devices marketed in the US are manufactured exclusively overseas. In 2024 alone, the US imported over $75 billion in medical devices and supplies, according to an AHA analysis of Census Bureau data. These imports include many low margin, high-use essentials in hospital settings — such as syringes, needles, blood pressure cuffs, and IV saline bags. Hospitals also rely on imports for advanced surgical tools and other critical technologies.

• US health care sector leaders say that the medical supply chain remains vulnerable, particularly as they brace for the impact of changing US trade policy, according to the Association of American Medical Colleges (AAMC). The specter of increasing tariffs that could increase the costs of pharmaceuticals, medical devices, and other products used in medical care is a key vulnerability. The health care sector hasn't yet seen large price increases related to tariffs that were enacted in the first half of 2025, according to the AAMC. The tariffs, which have varied by country and changed several times, were blocked by a US federal court in a May 28 ruling which said that the Trump administration overstepped its authority in implementing them. The administration has appealed the decision and financial experts say that it may still be able to use workarounds to implement tariffs. “Because there’s so much uncertainty, it’s very difficult to plan,” said Erin Fox, associate chief pharmacy officer for Shared Services at University of Utah Health. “It’s kind of a wait and see and recalibrate approach.”
• Medical equipment distributor industry employment increased slightly and average wages for nonsupervisory employees decreased slightly during the first six months of 2025, according to the US Bureau of Labor Statistics. Professional and commercial equipment distributor sales remained above pre-pandemic levels during the first half of 2025, according to the US Census Bureau (CB). Medical equipment distributors moderately increased their prices during 2024, according to the BLS.