November 7, 2025

Europe's medical device giants are feeling the harsh pinch from President Donald Trump's trade policies. Siemens Healthineers AG saw its shares plunge by a whopping 13% in Frankfurt on Wednesday — the steepest fall since the stock debuted in 2018. Why? The German healthcare titan warned that US tariffs could smash their costs, likely doubling the impact to around ₹400 million ($460 million) in fiscal 2026. Siemens makes fancy MRI and CT scanners in Germany and China but ships a huge chunk to the US, which rakes in 38% of their total sales. Even though the company likes the growth chances in the US market, it’s forced to keep a sharp eye on costs. CFO Jochen Schmitz told Bloomberg Television they "may think about potential value-add shifts" to fight back against these hefty duties. It’s not just Siemens feeling the heat. Denmark’s Ambu A/S also took a hit, with shares tumbling as much as 19% in Copenhagen after quarterly earnings missed the mark. Ambu said the US tariffs will clip its profit margin by around 2 percentage points. Meanwhile, Royal Philips NV expects tariffs to cost them about ₹200 million this year. Despite a recent EU-US deal aiming to reduce these tariffs, storm clouds loom. The US government started a fresh probe in September into medical device imports, which could mean even more levies. This keeps everyone on edge. Even with the tariff troubles, Siemens Healthineers is cautiously optimistic. It projects 5% to 6% sales growth in fiscal 2026, a "cautious guidance," as Jefferies analysts led by Julien Dormois put it. On another interesting note, Healthineers is weighing the sale of its diagnostics division, potentially worth over ₹6 billion according to Bloomberg. Schmitz said the transformation in diagnostics is "working well," giving the business the freedom to "get back to where it deserves," though he didn’t confirm any sale. So, the big question: Will Europe’s medical device heroes adapt fast enough to sail through the turbulent tariff storms? One thing’s clear – the trade battle is turning up the heat, making global medical tech business as spicy as a Mumbai street food stall!

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Tags: Siemens Healthineers, Medical devices, Us tariffs, Trade impact, Ambu, Royal Philips,