Fearing higher patient costs and less innovation, America’s most powerful medtech trade organization is asking the Trump Administration for immunity from tariffs on Canada, China, and Mexico.

Like many other industries, the medical technology sector is in danger of being caught in the crossfire of tariff wars triggered by President Donald Trump’s recent executive orders. Within minutes of the tariffs’ implementation on Feb. 4, China announced an antitrust investigation into Google, and retaliatory levies beginning Feb. 10 on select American imports (15% on coal/liquefied natural gas products; 10% on crude oil, agricultural machinery, and large-engine cars). China’s tariffs are set to take effect on Feb. 10, but Trump plans to talk to Chinese President Xi Jinping in the next few days.

American tariffs on imports from Canada and Mexico were also scheduled to take effect on Feb. 4, but Trump delayed their implementation by 30 days after the two countries acted to address his concerns about border security and drug trafficking.

The delay, however, did not discourage AdvaMed, the Medtech Association, from publicly sharing its concerns about Trump’s tariffs. In a lengthy statement, the organization warned the levies could trigger industry-wide layoffs and resurrect a medical device tax-like “climate of concern.”

AdvaMed President/CEO Scott Whitaker released the following statement earlier this month:

“We share President Trump’s goal to protect public health, as well as his deep concern for the terrible impact drugs have on too many Americans and on our healthcare system. This is also why we are concerned about tariffs on medical products from Canada, Mexico, and China.

“We have shared with the Administration our concerns about the potential impact tariffs could have on the medical technology supply chain that American patients depend on for their care. In light of that risk, an exemption was provided for most medical devices during President Trump’s first term with respect to the tariffs on China, and we are advocating for a similar approach this time. We will closely monitor for any effects the tariffs may have on this critical supply chain and share that information with the Administration.”

“Our industry is heavily regulated: FDA decides what products can be put on the market, and then Medicaid, Medicare, and the VA largely determine the reimbursement for procedures using medtech products. This means tariffs impact American companies similarly to an excise tax, which would lead to less R&D/innovation, layoffs, higher prices for the above-mentioned payers and patients, or all of the above. Additionally, moving manufacturing from one facility to a different or new facility requires FDA approval, which makes it difficult in the short term to adjust production to the U.S.

“The increased costs posed by tariffs, and their functioning essentially as an excise tax in practice, could resurrect the climate of concern the medical device excise tax created for nearly a decade.

“During the President’s first term with respect to the tariffs on China, a carve-out was provided for much of the medtech sector, given the risks to the U.S. hospital supply chain. We maintain the potential supply chain disruption and its downstream effects on patients remain a risk, should tariffs be implemented. Shortages of critical medical technologies are a real concern in our initial modeling.

“Tariffs could hold back the innovation potential of the U.S. medtech industry. R&D spending would likely be the first and most direct casualty, threatening America’s medtech innovation leadership. And increased tariffs may even have the unintended consequence of boosting the competitiveness of medtech industries of other nations.  

“We hope that these critical facts resonate with the Administration, and we will continue to make our case on behalf of the patients our companies serve.”