Trump Tariffs: Medical Supply Costs, Pharma Innovation Could Be Hit
As Janette Wider, Editor-in-Chief of Healthcare Innovation’s sister publication Healthcare Purchasing News, reported on April 3, The Trump administration announced on April 2 that it will implement a new tariff plan starting April 5, imposing a 10% universal tariff on imported goods from all countries. Additionally, beginning April 9, the U.S. will apply reciprocal tariffs on certain countries with which it has large trade deficits, in addition to the universal tariff. However, certain items—such as pharmaceuticals, semiconductors, and copper—will be exempt from these reciprocal tariffs. The previously announced tariffs for Canada and Mexico will remain unaffected by this new measure.”
As Wider wrote, “The president also signed an executive order to close the ‘de minimis loophole,’ a trade policy established by Congress that permits duty-free shipments valued at less than $800, specifically for Chinese imports. While the president had initially planned to address this earlier in the term, the effort was delayed due to what the administration referred to as logistical challenges.”
Wider noted several key takeaways for healthcare professionals:
Tariffs on medical products: Starting April 5, a 10-percent tariff on imported goods, including medical supplies, may raise healthcare costs and strain availability.
Concerns for pharmaceuticals and medtech: Tariffs could impact medical technology and pharmaceutical innovation, leading to higher costs and potential job losses, although pharmaceuticals are exempt from reciprocal tariffs.
Focus on domestic manufacturing: The U.S. aims to boost domestic production, improving supply chain resilience and reducing foreign dependency.
New certification for U.S.-made products: The "AMMA CERTIFIED USA MADE PRODUCT" seal helps identify domestically produced medical supplies.
The full article in Healthcare Purchasing News can be accessed here.
