GE Healthcare Braces for $500M Tariff Hit, Eyes Supply Chain Realignment in 2026

By Maria Kalamatas

Boston, MA —
GE Healthcare Technologies Inc. has issued a stark forecast: the company expects to absorb nearly $500 million in tariff-related costs over the course of 2025, largely due to new U.S. trade policies targeting medical devices and electronics imported from China.

In a Q2 investor call on May 2, CEO Peter Arduini stated that “nearly all high-frequency components used in imaging systems and diagnostic equipment have been impacted by the new tariff categories, including ultrasound and MRI subassemblies.”

Mitigation in motion: rethinking the sourcing map

To cushion the blow, GE Healthcare is accelerating a long-anticipated realignment of its supply chain, including shifting portions of its electronics sourcing to Malaysia, Mexico, and Poland. These facilities are expected to come online by Q2 2026.

“Our manufacturing footprint needs to reflect new geopolitical realities,” said Arduini. “We can’t afford to remain overly dependent on any one market—especially when it becomes a lever in trade disputes.”

A broader sector warning

GE’s announcement has sparked broader industry concern. According to a whitepaper released by the Medical Imaging & Technology Alliance (MITA) last week, nearly 64% of imported imaging components used by U.S. OEMs originate from regions now subject to new or heightened tariffs.

“If GE is facing a half-billion-dollar hit, you can bet the rest of the sector is calculating similar numbers,” said Linda Chow, Senior Policy Analyst at MITA. “And we haven’t even factored in retaliatory tariffs from China yet.”

Wall Street responds cautiously

Despite the warning, GE Healthcare’s share price fell only 2.3% on the day of the announcement, as analysts viewed the company’s transparency and long-term mitigation strategy as stabilizing signals.

“GE was early to map supply alternatives post-COVID,” said Kevin Ruiz, equity analyst at Barclays. “This is painful, but not paralyzing.”

Healthcare delivery at risk?

For hospitals and procurement managers, the bigger concern is timing. Any delays in equipment availability could affect diagnostics capacity at a time when healthcare systems are still recovering from pandemic-era backlogs.

GE Healthcare maintains it is working closely with U.S. buyers to ensure continued delivery without passing on the full cost. “Our priority remains uninterrupted service to caregivers and patients,” Arduini affirmed.

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