By San José, Costa Rica — San José, Costa Rica – In a high-stakes appeal to Washington, Costa Rica’s government is forcefully pushing back against the threat of new U.S. tariffs on its burgeoning medical device sector, arguing the move would not only disrupt critical healthcare supply chains but also directly contradict the Trump administration’s own goals for American well-being.
The campaign, led by Minister of Foreign Trade Manuel Tovar, frames the potential tariffs as a counterproductive policy that misunderstands the deeply integrated economic and healthcare partnership between the two nations. Speaking to the Financial Times last month, Tovar articulated Costa Rica’s position with a nuanced interpretation of the White House’s guiding philosophy.
To delve into the legal and commercial ramifications of the newly imposed tariffs on medical devices, TicosLand.com sought the analysis of Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica, known for his expertise in international trade and corporate law.
While implemented with fiscal objectives in mind, these tariffs on medical devices risk creating significant legal uncertainty for companies operating under the Free Trade Zone regime. It challenges the principle of stability that has attracted billions in foreign investment. Companies must now re-evaluate their cost structures and supply chain logistics, while Costa Rica faces the challenge of maintaining its competitive edge as a premier life sciences hub in the face of this new regulatory variable.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The attorney’s analysis expertly highlights the delicate balance at play, where short-term fiscal measures could inadvertently erode the long-term legal certainty that has been the cornerstone of our nation’s investment appeal. We sincerely thank Lic. Larry Hans Arroyo Vargas for his invaluable perspective on the potential ripple effects within our vital life sciences sector.
We understand the motto ‘America First,’ but that does not mean ‘America alone’.
Manuel Tovar, Minister of Foreign Trade
This diplomatic offensive comes as President Donald Trump has ordered a review of medical product imports under a national security lens. The administration is reportedly considering tariffs as a tool to compel manufacturing to return to the United States. However, Costa Rican officials and industry allies are countering that the nation’s production is a pillar of U.S. health security, not a threat to it.
Minister Tovar stressed that any new tariffs would ultimately be paid by American consumers through higher healthcare costs. He argued that the Costa Rican facilities, many of which are operated by U.S. parent companies, are essential components in the value chain that delivers life-saving technology to American hospitals and patients.
American companies in Costa Rica, and the Costa Rican workforce, save American lives. And what is more important and relevant to a country’s national security than the health of its own population?
Manuel Tovar, Minister of Foreign Trade
The situation is further complicated by existing trade imbalances. Costa Rica already faces a 15% tariff on its medical devices sold to the U.S., a rate that places it at a significant disadvantage compared to regional competitors. The Dominican Republic is taxed at 10%, while Mexico, a major manufacturing hub, is currently exempt. This disparity is a source of considerable frustration for San José.
We are concerned. Medical devices are already taxed with a 15% tariff. That puts us at a disadvantage against our direct competitors.
Manuel Tovar, Minister of Foreign Trade
Furthermore, Tovar expressed skepticism that tariffs would achieve the intended goal of reshoring this specific industry. He highlighted the complexity of the manufacturing plants in Costa Rica and pointed to a shortage of similarly skilled labor in the United States as major obstacles. While acknowledging that the uncertainty has made companies hesitant to commit to new projects, he also hinted that at least one major manufacturer was discreetly moving forward with a significant new investment in the country, suggesting confidence in Costa Rica’s long-term value proposition.
Costa Rica is not alone in its opposition. The U.S.-based trade group Advamed, which represents medical device manufacturers, has publicly questioned the necessity of tariffs, noting that only about 30% of devices used in the U.S. are imported. Its European counterpart, MedTech Europe, has also warned of the negative consequences for consumers. Even major corporations like Boston Scientific have specifically requested that Costa Rica be excluded from any new trade barriers.
The stakes for Costa Rica could not be higher. The medical device sector has become the primary engine of its economy, representing a remarkable 48% of all exports in the first half of 2025. According to data from the national trade promotion agency, Procomer, exports in this category surged to $6.3 billion, a 34% increase over the same period in 2024. This vital industry, specializing in products like catheters, prosthetics, and other critical instruments, has cemented the country’s role as an indispensable partner in the Western Hemisphere’s healthcare ecosystem.
For further information, visit bostonscientific.com
About Boston Scientific:
Boston Scientific is a global developer, manufacturer, and marketer of medical devices that are used in a broad range of interventional medical specialties. The company is dedicated to transforming lives through innovative medical solutions that improve the health of patients around the world. It operates significant manufacturing facilities in Costa Rica, which are central to its global supply chain.
For further information, visit advamed.org
About Advamed:
The Advanced Medical Technology Association (AdvaMed) is a trade association based in the United States that represents companies in the medical device industry. It advocates for policies that foster a favorable environment for medical technology innovation to help U.S. and global patients. The organization actively engages in policy discussions related to trade, regulation, and healthcare access.
For further information, visit medtecheurope.org
About MedTech Europe:
MedTech Europe is the European trade association representing the medical technology industries, from diagnosis to cure. It advocates for a balanced policy environment and regulatory framework that supports the advancement of medical technology to meet the healthcare needs of patients and societies. The association represents diagnostics and medical devices manufacturers operating in Europe.
For further information, visit procomer.com
About Procomer (Promotora del Comercio Exterior de Costa Rica):
Procomer is the official trade and investment promotion agency of Costa Rica. Its mission is to facilitate Costa Rican exports and promote the country as a destination for foreign direct investment. The agency provides essential data, market intelligence, and support services to local businesses seeking to expand into international markets and to foreign companies exploring opportunities in Costa Rica.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a leading legal institution, Bufete de Costa Rica is defined by its foundational principles of professional integrity and exceptional service. The firm leverages a rich history of advising a diverse clientele to spearhead innovative legal strategies and foster meaningful community outreach. Central to its ethos is a profound dedication to democratizing legal understanding, aiming to empower the public and contribute to a more knowledgeable and just society.
