Imaging lobbying group wants medical devices exempt from Trump tariffs
A lobbying group representing the imaging industry wants medical devices exempt from tariffs President Donald Trump is placing on goods manufactured in three key countries.
The White House announced the action Feb. 1, implementing a 25% tariff on imports from Canada and Mexico and 10% for products from China. However, the former two have now been delayed 30 days, while the latter change pertaining to China is scheduled to take effect today, Feb. 4, the American Hospital Association noted Monday.
The Advanced Medical Technology Association on Friday urged the administration to carve out an exception for medical technology. AdvaMed—which represents key players in imaging including GE HealthCare, Hologic, Philips, and Siemens Healthineers—expressed “concern” about the tariffs’ potential impact on the medical supply chain.
During Trump’s first term, the administration created an exemption for when imposing tariffs on China. AdvaMed is urging the same this time around.
“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,” President and CEO Scott Whitaker said in a statement shared Feb. 1. “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.”
AdvaMed is forecasting possible shortages of critical medical technologies, if the administration does not address this issue.
“R&D spending would likely be the first and most direct casualty, threatening America’s medtech innovation leadership,” Whitaker continued. “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,” he added later.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.