Challenges and Opportunities for China-US Healthcare Industry Under the Impact of Reciprocal Tariffs: Analysis of Impacts and Countermeasures

Abstract

This paper studies the special impacts of the new policy of the April 2025 Chinese and US counter tariff and find solutions. First, it analyzes the connotation and policy evolution of reciprocal tariffs, interprets the core content of the April 2025 policy, defines exempt and non-exempt categories in the healthcare industry, and examines the focal points of trade disputes. Then, from the perspectives of pharmaceuticals, medical devices, and healthcare services, it explores the impacts on China’s API (Active Pharmaceutical Ingredients) industry, the US pharmaceutical market, China’s medical device exports and supply chain, as well as hospital costs and patients’ financial burden. Finally, it proposes countermeasures from the industrial, hospital, and government levels. The conclusion shows that tariffs have disrupted the trade balance: China’s low- and mid-end API sector has been hit while its high-end sector has made breakthroughs, and the US faces unstable pharmaceutical supply; thus, coordinated responses from the three parties are required. In the short term, tariff negotiations between China and the US may continue; in the long term, the industrial chain will be restructured, and China and the US need to explore cooperation. Future research can focus on the long-term impacts of tariffs.