The healthcare industry is not giving up its fight against President Donald J. Trump’s tariffs.

In an April 1 letter to U.S. Trade Representative Jameison Greer, nine organizations—including the medical technology industry’s largest trade group (AdvaMed)—expressed their concerns about the potential impact of tariffs on medical/dental supplies, equipment, and devices.

The Trump Administration’s tariffs have spawned worldwide anxiety and stock market losses since their April 5 implementation. U.S. stocks seesawed between gains and wanes on April 7, opening the day in bear territory but then surging on false rumors of a possible tariff “pause.” Stocks re-entered the bear zone as Trump threatened to impose additional levies on Chinese imports.

Attempting to address the “injustices of global trade and drive economic growth,” President Trump’s tariff plan imposes a baseline 10% levy on all countries trading with the United States but increases those duties for partners with the largest U.S. trade deficits. Most countries importing goods to America are now being charged more under the plan. As it currently stands, Chinese imports, face a 54% tariff, Cambodian goods face a 49% duty, and Vietnamese products are now subject to a 46% levy. Higher tariffs also apply to Taiwan (32%), Thailand (36%), Sri Lanka (44%), India (26%), Japan (24%), and the European Union (20%), among others, though the latter has expressed interest in negotiating its levy with Trump.

Trump claims the tariffs are part of his “bold plan to reverse the decades of globalization that has decimated” America’s industrial base. The healthcare industry, however, considers the levies a threat to medtech innovation and lifesaving treatments. In their letter, the groups warn that Trump’s tariffs could significantly raise healthcare costs and limit patient access to products.

“Given the important role of our work in making America healthy, we are concerned that tariffs placed on medical and dental equipment threaten to disrupt the supply chain and raise costs for these critical items. This ultimately places further financial pressure on providers, hospitals, and health systems, particularly those located in rural and medically underserved areas,” states the letter, signed by AdvaMed, American Association for Homecare, American Dental Association, America’s Essential Hospitals, Association of American Medical Colleges (AAMC), Conquering CHD, Health Industry Distributors Association, Preeclampsia Foundation, Prevent Cancer, and Sepsis Alliance. “According to the American Hospital Association, 136 rural hospitals closed between 2010 and 2021, and a recent study by the Center for Healthcare Quality & Payment Reform found that 700 more hospitals are at risk of closure.”¹ 

The multi-organization letter to Jameison makes similar arguments to AdvaMed’s plea for medical product tariff exemption. Last week, the organization expressed its disappointment over the Trump Administration’s failure to spare healthcare items from higher import prices.

“We are also concerned that increased costs on medical and dental supplies could impede our ability to improve treatment outcomes, foster innovation, and meet the growing needs of pediatric and adult populations. This could result in longer wait times, reduced access to necessary treatments, and greater financial strain on healthcare systems that are already under pressure,” AdvaMed and the other eight organizations warned Jameison.  

“Since the tariffs were announced, other health care stakeholders have weighed in expressing concerns on consumer access, drug and product shortages, and medication price increases,” the letter continued. “A recent study from Black Book Market Research found that of the 200 industry professionals surveyed, 80 percent expected costs for hospitals and healthcare systems to increase by at least 15 percent in the next six months due to increased import costs.”² 

Despite the initial snub, the groups are not giving up hope of sidestepping Trump’s trepidation-triggering tariffs.

“We look forward to working with the Trump administration and other agencies to advance policies that improve the health outcomes of Americans. We respectfully request that medical and dental supplies, equipment, and devices are made exempt from tariffs to prevent further escalation of healthcare costs and ensure patient accessibility to these products,” the letter concludes. “Thank you for your attention to this matter. We are available for further discussion and look forward to working together to address these critical concerns.”

References
¹ https://www.aha.org/news/headline/2022-09-08-aha-report-rural-hospital-closures-threaten-patient-access-care
² https://blackbookmarketresearch.newswire.com/news/double-digit-tariffs-disrupt-u-s-healthcare-costsand-supply-chain-22513308