Johnson & Johnson (NYSE:JNJ) and Abbott Laboratories (NYSE:ABT) Earnings Sensitive to FDA Device Approvals Amid Tariff Uncertainty

US Tariffs Spare Drugmakers, But Threaten Diabetes Device Industry

The US government's decision to impose tariffs on $200 billion worth of Chinese goods has spared the pharmaceutical industry, but the diabetes device sector is bracing for the impact.

The tariffs, which took effect on May 10, target a range of consumer goods, including electronics, clothing, and furniture. However, the diabetes device industry is particularly vulnerable to the new tariffs, as many of the devices and supplies used to manage the condition are imported from China.

The tariffs are expected to increase the cost of diabetes devices such as insulin pumps, continuous glucose monitors, and blood glucose meters. The industry is already reeling from the high cost of developing and marketing these devices, and the added expense could make it even more difficult for patients to access the treatments they need.

"This is a devastating blow to the diabetes community," said Dr. James Woolliscroft, a leading expert on diabetes technology. "The tariffs will not only increase the cost of devices, but also limit access to life-saving treatments for patients who already face significant barriers to care."

The pharmaceutical industry, on the other hand, has largely escaped the impact of the tariffs. Many of the drugs used to treat diabetes are manufactured in the US or other countries, and imports are not directly affected by the tariffs.

However, some pharmaceutical companies that rely on Chinese imports for certain ingredients or manufacturing processes may still be impacted by the tariffs. For example, the US-based insulin manufacturer Novo Nordisk has reported that it may need to increase prices or adjust its supply chain in response to the tariffs.

The diabetes device industry is already facing significant challenges, including the high cost of developing and marketing new devices, and the need to improve patient access to these treatments. The tariffs are likely to exacerbate these challenges, and could have significant long-term consequences for the industry and the patients it serves.

In the short term, the tariffs are expected to increase the cost of diabetes devices and supplies, which could lead to higher healthcare costs and reduced access to care for patients. In the long term, the tariffs could also stifle innovation in the industry, as companies may be less likely to invest in new devices and technologies if the cost of doing so is increased.

The impact of the tariffs on the diabetes device industry is likely to be felt for years to come, and could have significant consequences for patients, healthcare providers, and the industry as a whole.