Tariff Pause and What It Means for the Dental and Medical Practice Market

Historic Tariffs and Their Ripple Effect on the Dental and Medical Practice Market

President Trump’s recent announcement of sweeping new tariffs—initially set to take effect in early April—marked what would have been the most significant trade shift since the 1920s. Proposed rates included a 10% universal tariff on all imports and targeted increases up to 34% for goods from China. While these moves initially rattled financial markets and raised concerns across many industries, the administration has now officially placed a temporary hold on the rollout, opening the door for renegotiation and industry feedback.

For professionals in healthcare—including MedSpa owners, dentists, optometrists, dermatologists, plastic surgeons, and Freestanding Emergency Room (FSER) operators—this pause offers welcomed clarity. It reaffirms what many investors and lenders already know: healthcare remains one of the most resilient and sought-after sectors in today’s economy.

Practice Values Remain Strong Across Specialties

While the broader economy may face headwinds, healthcare practice transactions are still moving forward at a healthy pace. Whether you’re a dentist selling a high-production GP office, a MedSpa operator looking to expand locations and partner with a PE backed group, or a plastic surgeon looking to expand and own an Ambulatory Surgical Center (ASC), deal flow remains strong—and buyer demand is steady.

DSOs, MSOs, private equity groups, and independent providers are still actively acquiring well-run practices, especially those with consistent cash flow, growth potential and robust compliance. Lenders continue to view healthcare—particularly optometry, dermatology, and dentistry—as a low-risk investment compared to other asset classes.

Supply Costs and Equipment: Less Volatile Than Expected

With the pause on tariffs, anticipated price hikes on imported equipment and consumables have been delayed, if not avoided altogether. That’s good news for any optometrist ordering new frames and inventory, or MedSpa investing in laser platforms, or FSER updating monitoring equipment.

Additionally, many essential healthcare items—such as pharmaceuticals, semiconductors, and select medical components—were already exempted from the proposed tariffs. Practices that had been bracing for price spikes can now move forward with greater confidence in their purchasing plans.

Construction and Leasing Still Favorable for Startups and Expansions

Doctors and operators planning to build or renovate their spaces—including MedSpas, dermatology clinics, plastic surgery centers, and dental startups—may still face slight inflationary pressure on materials like steel and electronics. However, with tariffs currently on hold, the most severe cost impacts have been avoided.

Meanwhile, landlords and developers remain eager to secure healthcare tenants, offering generous tenant improvement (TI) allowances and long-term lease flexibility. Whether it’s a new FSER site, a MedSpa flagship, or a second optometry location, now is a strategic time to negotiate favorable real estate deals.

Falling Interest Rates Create Opportunity

One of the biggest advantages in today’s market is the continued drop in interest rates. Since most healthcare lending is based on the 10-year Treasury yield, the downward trend means more affordable financing options for acquisitions, buy-ins, and startups.

Whether you’re a plastic surgeon purchasing a building, a dentist refinancing your loan, or a MedSpa looking to open multiple locations, now is a great time to secure lower payments and increase long-term financial flexibility.

Optimism for Healthcare Owners and Buyers

Despite a few economic curveballs, healthcare remains one of the most stable, investable, and future-proof industries. FSERs, dental groups, MedSpas, dermatology chains, and solo physicians alike continue to attract the attention of banks, buyers, and developers.

The temporary pause in tariffs gives healthcare professionals room to plan and act without the fear of sudden, unmanageable cost increases. It’s a rare moment where interest rates are favorable, demand is strong, and long-term fundamentals are still in place.

Whether you’re preparing to sell, evaluating growth opportunities, or eyeing your first location—there’s every reason to move forward with confidence.

 

Written by Tommy Newton, Founder of Xite Company. With over 15 years of experience in healthcare real estate and practice sales across the U.S., Europe, and Mexico, Tommy helps doctors maximize value when buying, selling, or expanding their practices.

 

 

Practice Sales

 

About Xite

Xite Company is a national leader in healthcare real estate and practice sales, boasting an established reputation committed exclusively to representing doctors since 2013. With a transaction volume surpassing $1 billion, our expertise spans across practice sales, start-ups, brokerage, demographics, development, and project management. We are committed to empowering healthcare professionals, helping them flourish as entrepreneurs and practice owners. Leveraging evidence-based data and profound industry knowledge, our dedicated team ensures a seamless journey in all real estate endeavors, from office space selection and complex construction projects to strategic practice transitions, maximizing value every step of the way. 

For more information, visit https://xiteco.com

 

 

No warranty or representation, expressed or implied, is made regarding the accuracy of the information contained herein. The same is submitted subject to errors, omissions, changes of prices, rental, financials or other conditions. The statements and information contained herein are not intended to and do not constitute an opinion as to any tax, legal or other matter. Please note, any commitments or binding agreements with Xite Realty, LLC (together with its subsidiaries and affiliates) must be in written form with and agreed to via signature by one of its owners, managers or Principals.