The Trump administration is facing pressure from medical device industry groups, including Advamed, over potential tariffs on imported goods. The group’s CEO, Scott Whitaker, expressed concerns that tariffs could disrupt the supply chain and impact innovation, R&D, and prices for patients.
Whitaker stated that tariffs affect U.S. companies like an excise tax, which could lead to layoffs, higher prices, and decreased innovation. However, relocating manufacturing within the U.S. requires FDA approval, making it challenging in the short term.
The industry is particularly concerned about the potential shortage of critical medical technologies, which could compromise the nation’s hospital supply chain. Canadian Prime Minister Justin Trudeau has already responded by announcing plans to impose matching tariffs on up to $155 billion in U.S. imports.
In response to these concerns, Advamed is advocating for an exemption similar to the one provided during President Trump’s first term with respect to China. The group believes that such an exemption would mitigate supply chain disruptions and protect patients.
Analysts, including J.P. Morgan, agree that medical devices are a critical component of the U.S. medtech industry and warrant consideration for an exemption. As the largest source country for 40% of imported medical devices, Mexico’s relocation within the U.S. is essential to maintaining the nation’s innovation leadership.
Source: https://www.medtechdive.com/news/Advamed-medtech-exemption-Trump-tariffs/739040