The U.S. Department of Commerce has launched an investigation into imports of medical devices, robotics and industrial machines under Section 232 of the Trade Expansion Act, a move that could weigh on European medical technology companies with significant U.S. exposure.
The probe, initiated Sept. 2, gives the Commerce Secretary 270 days to deliver findings to the president, setting a June 2026 deadline.
The report then enters a 90-day review period before the president has 15 days to act, meaning potential measures could extend into October 2026, according to a Bernstein note citing Bloomberg and the Federal Register.
Section 232 allows the U.S. president to restrict imports if they are considered a threat to national security. Existing investigations cover pharmaceuticals, semiconductors, aircraft and critical minerals.
European medtech firms are monitoring whether this process could override the Nairobi Protocol, which bans tariffs on products for people with disabilities. “The ability of Section 232 to override the Nairobi Protocol is unclear,” companies told Bernstein analysts.
So far this year, hearing aids from Sonova, Demant, GN and Amplifon, along with chronic care products from Coloplast and ConvaTec, have been exempt from country-specific tariffs.
But Bernstein said that if Section 232 were applied, “greater risk” would fall on chronic care makers, given “less ability to pass through price increases.”
Tariff exposure will depend on U.S. sales, the extent of domestic production, product margins and pricing power. While Section 232 restrictions typically apply regardless of where manufacturing occurs outside the United States, trade agreements can set tariff ceilings.
Under a recent U.S.-Europe deal, future Section 232 tariffs on pharmaceuticals, semiconductors and lumber are capped at 15%. By contrast, European steel and aluminum continue to face tariffs of 50%.
Bernstein noted that medtech is “more likely to fall in the same category as pharma,” which could limit the impact for Philips, Siemens Healthineers and Coloplast, whose U.S.-Europe trade flows are significant.
Firms with production located outside the European Union, such as ConvaTec, Smith & Nephew and Elekta, may face steeper barriers. Bernstein’s “Deglobalization” analysis emphasized that such companies “are likely to face additional tariffs on top of the current country-specific rates.”
In its investment outlook, Bernstein rated Philips, Siemens Healthineers, ConvaTec, Coloplast and Smith & Nephew as “outperform.” Elekta, Fresenius Medical Care and DaVita were rated “market-perform.”
Among consumer-focused medtech firms, Straumann, Alcon, Sonova, Demant and Carl Zeiss received “outperform” ratings, while Amplifon was rated “market-perform” and GN Store Nord “underperform.”
Ambu and Getinge were rated “market-perform” in the smid-cap healthcare group, with Tecan at “underperform.”
Source :
https://www.investing.com/news/stock-market-news/eu-medtech-what-is-the-risk-from-the-section-232-investigation-4260987
