Department of Commerce launches investigation into imaging device imports, with potential for new tariffs
The U.S. Department of Commerce has launched an investigation into medical imaging device imports, with industry giant Philips reportedly engaged with the discussions.
Authorities are seeking to determine the impact on national security of importing CT scanners, MRI machines, X-ray apparatuses and other radiologic equipment. The notice, published Friday in the Federal Register, also pertains to other medical items such as personal protective equipment, surgical instruments, and hospital beds.
“The department is particularly interested in comments and information directed at the criteria listed in … regulations as they affect national security,” the notice reads.
This could include the economic impact of “artificially suppressed prices” for imaging devices, along with the ability of foreign nations to “weaponize their control over supplies.” The administration also wants to determine the feasibility of increasing domestic capacity for producing imaging and other medical devices in the U.S., along with the impact of current trade policies on local manufacturing. Commerce also ponders whether measures, “including tariffs or quotas, are necessary to protect national security.” Authorities are seeking public comment on the notice, with a deadline of Oct. 17.
Amsterdam-based Philips is “actively engaged” with policymakers in Washington but does not anticipate any immediate impact from the probe, Reuters reported Sept. 25. The investigation initially launched on Sept. 2 but wasn’t publicly announced until last week. Reuters said the so-called “Section 232” inquiry could potentially be used as a “basis for higher import tariffs on a wide swath of medical and industrial goods.”
"At this stage, details are limited, and a range of potential outcomes remain under discussion," Philips told Reuters in an emailed statement.
AdvaMed—an imaging industry lobbying group, which represents Philips, along with numerous other big-name radiology manufacturers such as Siemens, GE HealthCare and Canon—commented on the investigation Sept. 25. It noted that 70% of the medical technology American hospitals rely on is made in the U.S. across “thousands” of facilities in all 50 states. Since 2019, medtech jobs have grown at three times the average manufacturing job rate, “thanks in large part to sound tax policies.”
“We look forward to continuing our work with the administration, including through the Commerce department’s investigation, to strengthen our already-robust and uniquely American industry,” AdvaMed CEO President and CEO Scott Whitaker said in a statement Thursday. “We believe this process will reinforce the fact that U.S. medtech manufacturing is strong and lower tariffs will fuel more manufacturing and job growth in the U.S., which means greater access to lifesaving technologies and lower costs to American hospitals and patients.”
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.