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Trump Tariff Impact Is Immediate: Rehabilitation Sector Plummets 85.02% In One Month, Reveals Abimo To CNN.
The Trump tariff on Brazilian products caused an immediate and profound impact on the medical devices industry. A new survey by Abimo (Brazilian Association of Medical Device Industry), shared with CNN, reveals a drastic drop in exports to the United States. The segments with the highest added value were the most affected: dental exports plummeted 93.09% and rehabilitation exports fell 85.02% in just one month.
Overall, sales of medical devices to the North American market fell 30.04% month-over-month, with the US$ 21.2 million recorded in August representing the lowest volume of the year. The data raises a red flag about the Brazilian market’s reliance on a few strategic buyers and forces an urgent change of course to other continents.
The Escape Route: Europe and Latin America Emerge As Alternative
In light of the trade blockade imposed by the U.S., the Brazilian industry has shown resilience and quickly sought new markets. According to data from Abimo, released by CNN, sales to Europe showed a remarkable growth of 44.51% between July and August. This movement was primarily driven by countries that significantly increased their purchases.
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On the European podium, the highlights were Spain, with a surprising increase of 632.59%, followed by France, which raised its imports by 238.77%, and Switzerland, with a growth of 130.72%. In Latin America, the trend was similar, with markets like Bolivia (+56.18%) and Mexico (+28.34%) gaining immediate relevance as alternative destinations.
The Abimo Alert: “Immediate and Profound Impact”
Despite the rapid ability to redirect, Abimo’s CEO, Paulo Henrique Fraccaro, analyzes the scenario cautiously. “The redirection to Latin America and Europe proves that there is demand for Brazilian production, but we need to ensure competitive conditions for this movement to be sustainable in the long term,” Fraccaro told CNN.
Fraccaro was emphatic in classifying the Trump tariff as a severe blow. “The U.S. tariff brought an immediate and profound impact on our sales,” he said. In addition to those already mentioned, the medical equipment sector also suffered, with a retraction of 59.94% in sales to the U.S.
Double Dependence: The Risk Of Importing From The U.S.
The Abimo survey highlights another structural vulnerability of the sector: the dependence on inputs coming precisely from the United States. While the Trump tariff blocks exports, Brazil continues to be a large buyer of U.S. components. In total for 2025, sector imports have already reached US$ 7.23 billion, an increase of 8.37% compared to the previous year.
Of that total imported amount, 16.57% comes from U.S. territory. This “double dependence” – needing the country as a supplier while it closes itself off as a customer – puts the industry in a delicate position. The category of medical devices is broad, ranging from laboratory reagents and heart valves to probes, surgical sutures, and the dental equipment now taxed.
The Role Of The Government And The Search For New Agreements
The federal government is aware of the problem. At the end of August, the vice president and minister of Development, Industry, Commerce, and Services, Geraldo Alckmin (PSB), led a delegation to Mexico. The clear aim was to position the country as a strategic alternative destination for Brazilian items affected by the Trump tariff. The initiative aligns with data from ApexBrasil, which had already highlighted the potential of the Mexican market.
For Abimo’s CEO, the long-term solution requires more than trade missions. The predictability of the sector depends on structural actions. “It is essential to advance in international agreements and in regulatory reciprocity. Only then can our companies compete on equal terms and plan with predictability,” concluded Paulo Henrique Fraccaro.
Do you agree with this change? Do you think it impacts the market? Leave your opinion in the comments; we want to hear from those who experience this in practice.
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