The medical technology sector is reportedly anticipating a potential escalation of trade tensions and proactively bolstering inventory levels across Europe.
Recent data released by the German Federal Statistical Office reveals a 15 percent increase in medical technology product imports into Germany during the first quarter of the year, compared to the same period last year. Imports specifically from the United States experienced an even more significant surge, rising by 42 percent year-on-year.
Jörg Mayer, Managing Director of Spectaris, the German industry association for optics, photonics, analysis and medical technology, attributed this phenomenon to US medical technology companies strategically increasing stockpiles in Germany and ensuring their European clients do the same. This move appears intended to mitigate potential disruptions stemming from ongoing trade uncertainties.
German medical technology companies are currently affected by US tariffs of 10 percent, implemented in April. The possibility of a tariff increase to 30 percent by US President Donald Trump, alongside potential EU counter-measures, raises concerns about further impacts on the sector. Mayer expressed hope for a resolution through ongoing negotiations between the EU and the US administration, emphasizing the importance of a calm and measured approach to avert further escalation in the trade dispute.