The AdvaMed trade group, the country’s most powerful medtech organization, has expressed concerns that tariffs on China, Mexico, and Canada could lead to higher patient costs. The group is calling on President Donald Trump to exempt medical devices from the tariffs.
Tariffs are expected to take effect early next week, with a 10% tariff on goods from China set to impact the medical technology supply chain. Medtronic, which employs over 9,000 people in Minnesota, has stated that it will develop mitigation strategies if necessary.
The AdvaMed group fears that tariffs could lead to layoffs and less research and development, as companies rely heavily on imports from China for components and logistics. John Hastings, CEO of Nonin Medical, a pulse oximeter manufacturer, noted that even small medical device companies would be affected by the tariffs.
Tinglong Dai, a professor at Johns Hopkins University’s business school, said that tariffs could lead to higher costs for essential components, making medical devices more expensive and shortages more likely. The US medical device supply chain relies heavily on China for batteries and logistics, with Canada providing finished products and logistics.
The AdvaMed group is urging the administration to reconsider its stance on tariffs, citing concerns about their impact on jobs and research and development in the medtech industry.
Source: https://www.startribune.com/medtech-tariffs/601216339