American Hospital Association Advocates for Tariff Exceptions on Medical Equipment
Request for Tariff Considerations
The American Hospital Association (AHA) has urged the Trump administration to explore tariff exceptions for essential medical equipment. This appeal specifically targets goods that are in short supply and crucial to the U.S. healthcare system. The request arises from a Section 232 national security investigation, which may result in increased tariffs or trade restrictions affecting medical supplies, including diagnostic tools, treatment equipment, and personal protective equipment (PPE). In a letter submitted on Friday during the public comment period for the investigation, the AHA emphasized the importance of considering tariff exceptions while also focusing on enhancing domestic manufacturing capabilities, strengthening the supply chain, and reducing dependence on international sources, particularly from adversarial nations.
Impact of Tariffs on Medical Supplies
According to an analysis of Census Bureau data, the U.S. imported over $75 billion in medical devices and supplies in 2024. The Food and Drug Administration reported that 62% of medical devices utilized in the U.S. are imported. The AHA has expressed concerns that new tariffs on PPE and other medical consumables could disrupt the supply chains vital for patient care and the protection of hospital staff. The organization also warned that tariffs, coupled with potential retaliatory measures from other countries, could lead to increased costs for hospitals.
Challenges with Low-Margin Imports
The AHA highlighted that many imports consist of low-margin items, such as single-use blood pressure cuffs, sterile drapes, surgical instruments, and syringes, which are challenging to produce sustainably within the U.S. PPE is a particularly pressing issue, as hospitals rely heavily on international sources for this equipment. In 2023, Chinese manufacturers were the primary suppliers of N95 respirators and other types of respirators, accounting for one-third of disposable face masks, two-thirds of non-disposable face masks, and 94% of plastic gloves used in healthcare settings.
Complexity of U.S. Medical Technology Supply Chains
Additionally, medical technology produced in the U.S. often incorporates substantial international components. For instance, a typical U.S.-manufactured infusion pump may include parts from over 20 countries, while a magnetic resonance imaging machine can contain components from 15 different nations. The AHA stated, “Reshoring alone cannot provide the supply chain stability needed to ensure unrestricted access to necessary devices and equipment for patient care.”
Industry Concerns and Proposals
Medtech trade groups have also voiced apprehensions regarding the potential negative impact of increased tariffs on the industry. AdvaMed has proposed a series of policies aimed at mitigating these effects. Both AdvaMed and the Medical Device Manufacturers Association advocate for reciprocal tariff relief agreements with preferred trading partners to alleviate some of the burdens imposed by potential trade restrictions.