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AdvaMed warns tariffs could disrupt medical product supply

Medical Technology

Business Honor
01 Febuary, 2025

AdvaMed raises concerns over tariffs on medical products, warning of supply chain disruptions and innovation setbacks.

AdvaMed, the Medtech Association, has raised some serious concerns about the possibility of tariffs being imposed on medical products from Canada, Mexico, and China because, according to a statement by Scott Whitaker, Executive President and CEO, these could greatly affect the Medtech supply chain, where American patients rely entirely for their essential health care.

Whitaker reiterated President Trump's undertaking to protect public health against drugs with harmful effects on Americans, but said tariffs on medical products could render an otherwise smooth supply chain into chaos, subsequently causing cancellation of innovation projects or increase prices and, with that, acute shortages of essential medical technologies. An exemption under the tariffs on China was provided for most medical devices during Trump's first term, and AdvaMed is throwing its weight behind a similar approach this time around.

The medical technology industry is one of the most heavily regulated industries, with the FDA overseeing product approval, and government programs such as Medicaid, Medicare, and the "VA" determining reimbursements. According to Whitaker, tariffs act like an excise tax that could hinder R&D expenditures, force layoffs, and lead to price increases for both payors and patients. He also said that the transfer of manufacturing to new sites would require FDA approval, which complicates any short-term modifications in capacitating U.S. production.

Whitaker chastised that increased tariffs would strangle innovation within the U.S. medtech industry, doubtlessly compromising the nation's position of leadership in that sphere. The unintended consequences of these tariffs could favor medtech industries in other countries and provide improved competição. With these matters highlighted, AdvaMed underscored the issues' urgency and repeated its commitment to continuing championing policies that assure protection of U.S. healthcare systems and Medtech innovation.