Financial/Business

AdvaMed Takes Tariff Fight to U.S. Senate

Organization's president testifies before finance committee on the proposed levies' impact on the medtech supply chain.

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By: Michael Barbella

Managing Editor

Photo: Katherine Welles/Shutterstock.

AdvaMed, the Medtech Association, has taken its tariff exemption appeal directly to federal lawmakers.

The organization’s president testified before U.S. Senate Committee on Finance earlier this week about the impact of the Trump administration’s proposed tariffs on the medtech supply chain. AdvaMed, which has been fighting for an exemption for several months now, was the only healthcare association invited to discuss the issue with committee members.

“As we discuss trade and tariff policy, it is essential for policymakers to understand how this industry impacts health care, not only in the United States but around the world,” AdvaMed President/CEO Scott Whitaker told committee members on May 14. “Simply put, we are the backbone of the health care system, the engine that makes hospitals run. Our industry is a critical component to keeping our health system functioning.  Medtech products are not optional. They are in many respects mandatory. Our industry has not historically faced tariffs. Because most countries have recognized the humanitarian nature of our work, they have collectively agreed to avoid placing tariffs on these lifesaving products.”

President Donald J. Trump’s current tariff proposal—which is still subject to change by the day (hour, even)—includes no such exemption for medical products. Tariffs for most countries remain on hold until mid-July, though a U.S.-U.K. accord relaxes duties on British automotive and steel imports as well as American beef and ethanol imports.

Earlier this week, the Trump administration announced an initial trade deal with China that reduces Chinese and American import tariffs by 115%. “It was always respectful,” U.S. Treasury Secretary Scott Bessent told reporters. “We had the two largest economies in the world. We were firm—and we moved forward…We came with a list of problems that we were trying to solve and I think we did a good job on that.”

Related: AdvaMed, U.K. Medtech Group Seek Flexibility on Tariffs

In his testimony, Whitaker reiterated his organization’s support for fixing longstanding and unfair trade imbalances and bringing manufacturing back to the United States. However, he warned that Trump’s tariff policies puts medical innovation—a “uniquely American success story—at risk due to the life-saving and humanitarian nature of the industry’s products.

He also said the sector could not absorb the higher costs that likely would result from tariffs, nor could the supply chain function smoothly. Medtech supply chain leaders, in fact, report that procurement timelines have already slipped, especially for surgical kits, diagnostic components, and imaging devices, Whitaker testified.

“For example, one company manufactures critical products for neonatal intensive care units, supplying 50% of the market for one product category and around 70% for another,” Whitaker noted. “If tariffs continue to be a threat, this will result in backorders, delays, and will ultimately impact NICU patient care. Currently, there are no competitors ready to immediately make up the capacity, and as a company executive told me, ‘We are talking about patients measured in ounces, not pounds.'” 

Encouraged by the agreement with China, Whitaker urged Senate committee members to consider instituting a “zero-for-zero” reciprocal tariff policy on medical products when negotiating future trade deals.

“Given the unique lifesaving and humanitarian nature of our products and innovations, both the United States and its trading partners should respect that longstanding policy—a move that would prevent potential supply chain disruptions and cost increases that would negatively impact hospitals and patients around the world,” Whitaker concluded. “There is precedent for this approach. In fact, during the first Trump Administration, many medtech products were exempt from the tariffs imposed. We stand ready to work with this Committee and the president on further strengthening industry’s already-vibrant and growing American presence. And we stand ready to work with him on alternative ways to restore fairness to trade policies that negatively impact the American medtech sector.”

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