Tariffs push Brazil’s medical device makers to diversify exports

Maquira expansion

With annual revenue of R$150 million, Maquira Dental Group, based in Maringá (Paraná), is one of the mid-sized companies in the sector. With 25% of its revenue coming from exports, Maquira was in the process of expanding operations in the U.S. with a local subsidiary when the tariff increase hit.

“We spent a couple of months running in circles. It wasn’t the best time for it, but we decided that tariff or not, we would push forward,” said Daniel Maia, the company’s export and international marketing director. “We cut out our distributor to offset the lost margin and began selling directly in the U.S. We started in October and the results have been promising.”

Maquira manufactures resins, biomaterials, cements, and orthodontic parts. “Brazil is recognized globally for its dental expertise and ranks among the world’s top three producers of repair cement, resin, alginate, and silicone, behind only the U.S. and China,” Maia said. The company is now strengthening its presence in Japan, the Philippines, Indonesia, Singapore, and Taiwan, among other Asian markets.

From January to November 2025, Brazil’s total medical device exports reached $1.05 billion, a 2.27% decline from the same period in 2024. Exports to the U.S. alone totaled $266 million, up 5.71%, driven by strong performance in the first seven months of the year before the tariff hike.

“Despite the higher tariffs, the U.S. remains our main export market,” said Larissa Gomes, international marketing and project manager at ABIMO. The sector was not included in the list of exemptions later granted by the Donald Trump administration, which partially rolled back some tariff increases.

“These tariffs definitely impacted us, but they affected everyone, many of our competitors are global companies from other countries,” said Caetano Biagi, CEO of Alliage, which produces high-tech dental imaging equipment, including CT scanners for clinics and dental offices. “We face global competition from Japanese, Finnish, and Korean companies, and they too are looking at markets like Latin America to offset these challenges.”

Today, 40% of Alliage’s production is exported, with the U.S. as its top destination, followed closely by Argentina. As part of its international growth strategy, the company acquired Japanese firm PreXion, which specializes in dental CT scanners and already had operations in San José, California.

If the Trump-era tariffs persist, Biagi already has a contingency plan. “Nothing prevents us from assembling our own machines in the U.S. Currently, we manufacture only in Ribeirão Preto [São Paulo state], and 80% of our suppliers are Brazilian, which is something we’re proud of.” Alliage is also expanding into markets like the United Arab Emirates and India.

Opportunities in Asia

“Many Asian countries are expanding access to surgical procedures that used to be limited to smaller portions of the population,” said Elias Magalhães, CEO of Hpbio, a mid-sized Brazilian company that develops and manufactures products for implants and surgical procedures, including catheters and drainage systems.

He explained that neurosurgery is one of the fastest-growing specialties globally, and given the large populations in many Asian countries, the sales potential is especially attractive for Brazilian firms.

“This year, exports accounted for 40% of our annual revenue. And among our top five international customers by volume, three are in Asia: Indonesia, Pakistan, and China,” said Flávia Rodrigues, international business director at Hpbio.

The company recently signed a new contract with Double Medical, its distributor in China. The goal is to match its domestic sales of programmable valves in the Chinese market, according to Rodrigues.

Chinese barriers

To make that happen, Hpbio had to undergo China’s rigorous technical and regulatory review, including local inspections, laboratory validations, and clinical training. “That was the first hurdle. Then we had to overcome the skepticism toward Brazilian technology and convince doctors and healthcare professionals,” said Magalhães.

In those markets, global giants like U.S.-based Medtronic and Germany’s Aesculap (part of B. Braun) dominate.

According to ABIMO’s Gomes, China’s regulatory environment is highly protectionist. “In addition to the difficulty in obtaining approvals, which is extremely expensive, China doesn’t want new companies entering its market. That’s the main reason we don’t export more there,” she said.