Minnesota medtech firms increase lobbying as tariff costs pile up

As business uncertainty grows in Washington, medtech giants that employ tens of thousands of Minnesotans have poured more cash into lobbying efforts in Washington, D.C. this year — an increase of over $600,000 for the first quarter, according to lobbying disclosures collected by nonprofit OpenSecrets.

Medtronic, Abbott Laboratories and Boston Scientific reported lobbying for long-endorsed causes such as Medicare eligibility and taxation issues. But filings also reveal a shift to the Trump administration’s priorities, from downsizing the federal workforce to ramping up tariffs with foreign countries.

Through the first three months of 2025, Boston Scientific, with a huge cardiology division based in Minnesota, upped its spending by roughly 20%, reporting $572,000 in federal lobbying.

According to filings, company officials lobbied in Congress on supply chain issues, advocating “on topics that could potentially impact the medical device supply chain” such as decisions the House Select Committee makes on strategic competition between the United States and the “Chinese Communist Party.”

Medtronic, which has operational headquarters in Fridley, spent $1.07 million on federal lobbying, a 10% increase compared with 2024 for the first quarter. They reported topics including supply chains, tariffs, artificial intelligence and “FDA workforce.”

“For years, Medtronic has advocated for public policies that help make our healthcare technologies safe, effective, and accessible for patients,” said a company spokesman in a statement. ”Our commitment to this mission remains unchanged.”

A bump in lobbying dollars is not unusual during a new administration and Congress. Paul Vaaler, a professor at the University of Minnesota’s law school and Carlson business school, said what’s changed is that the expense and time companies are investing into lobbying has grown.

“It’s increased markedly because there is more of an active market for political change,” said Vaaler, who also teaches at the U’s law school.

The level of tumult in the business environment under the Trump administration is also new. Dan Auble, senior researcher specializing in lobbying data at OpenSecrets, said instances of lobbying reports mentioning tariffs across industries “have kind of exploded” in the first quarter.

Estimates suggest tariffs may cost public medtech firms billions of dollars. Workforce reductions at the U.S. Food and Drug Administration also threaten to slow down medical device review processes companies depend on to set their financial outlook.

During a May 21 call with investors, Medtronic executives said tariffs may cost the company up to $350 million.

Earlier this year, Boston Scientific said tariffs could cost up to $200 million in 2025. In late May, following productive trade talks between the United States and the European Union, CEO Mike Mahoney, speaking at the Bernstein Strategic Decisions Conference, clarified that the tariff impact “is certainly a better situation than [where] we were when we gave our first quarter report.”

Abbott Laboratories, the Chicagoland-based maker of COVID-19 tests and medical devices, said tariffs might cost hundreds of millions of dollars over six months. Federal disclosures reveal Abbott boosted its federal lobbying budget by $410,000 to $2.32 million.

AdvaMed, the powerful medtech trade group, also spent an additional $12,000 for the first quarter over the prior year. In May, AdvaMed CEO Scott Whitaker testified to the Senate Finance Committee, calling for medtech tariff exemptions.

First quarter receipts for Boston Scientific show two lobbyists with Hollier & Associates who formerly worked as staffers for Idaho Republican Sen. Mike Crapo, the Senate Finance chair, received over $70,000.

Some firms in D.C. have been working double-duty for AdvaMed and medtech companies. According to disclosures, the law firm Alston & Bird was paid $30,000 and $80,000 by AdvaMed and Boston Scientific, respectively, for work ranging from AI to trade.

Tarplin, Downs & Young, a D.C. consultant, was hired by AdvaMed ($80,000) and Abbott ($80,000). TDY’s lobbying work for Abbott listed familiar themes, including Medicare reimbursement and national trade.

In a first quarter filing detailing its approximately $60,000 work for Medtronic, Washington D.C.-based Mehlman Consulting, located just blocks from the White House, reports advocating on “issues related to taxation of multinational corporations” and “U.S. trade policy.”

Under the disclosure forms, amounts are rounded to the nearest $10,000.

Lobbying firms did not respond to the Minnesota Star Tribune’s request for comment, nor did Boston Scientific or Abbott Laboratories.

Jim Jeffries, AdvaMed’s head of public affairs, said in a statement it is important to get to know the new administration and Congress and share the group’s message: “The U.S. is the global leader in medical innovation and the backbone of our health care system, so policy can either encourage that—or stifle it."

Legislation providing “immediate Medicare coverage of breakthrough medtech is an example of the former,” Jeffries added. “Trade policy is an example of the latter.”