The US healthcare system is facing a growing concern as tariffs imposed by President Trump’s administration begin to affect the availability of medical supplies, such as syringes and PPE. Hospitals are taking contingency measures, including freezing spending and exploring alternative suppliers.
Experts warn that a global trade war could lead to pandemic disruptions if imported goods from China cannot be replenished. The American Hospital Association has expressed concerns about tariffs on pharmaceuticals, which could drive up prices of patient care.
The industry is heavily reliant on Chinese imports for medical gear, with enteral syringes facing a 245% tariff. Many startups that had increased domestic manufacturing during the pandemic have since disappeared, leaving hospitals vulnerable to supply shocks.
Tariffs on pharmaceuticals are also causing concern, particularly for cancer and cardiovascular medications. Hospitals are struggling to balance their budgets as 82% of healthcare experts expect tariff-related expenses to increase hospital costs by at least 15%.
While some hospitals may be insulated from the worst effects due to long-term purchasing contracts, others are likely to face significant challenges. Trade groups are lobbying for tariff exemptions for critical medical supplies, including drugs.
As supplies dwindle and contracted prices expire, the true costs of tariffs will become apparent. Vulnerable and rural healthcare providers, already operating on thin margins, could be disproportionately affected by changes in supply costs.
Source: https://www.axios.com/2025/05/01/hospitals-struggle-tariff-impacts