The American Hospital Association has called on the Trump administration to grant exceptions to proposed tariffs on medical devices and pharmaceuticals sourced from Mexico, Canada and China.
In a letter to President Donald Trump, AHA President and CEO Richard Pollack expressed concerns that the tariffs, which reportedly aim to address drug smuggling and protect American industries, could disrupt the availability of lifesaving medications and essential medical supplies in U.S. hospitals.
“Tariffs create inefficiencies in the market and lead to higher supply costs regardless of where the product is manufactured (deadweight loss). We anticipate reduced consumer spending to adjust for reduced business profits. Our supply chain pressure has remained neutral for the current fiscal year due to flexibility with sourcing various suppliers,” Robert Tatsumi, MD, president of Oregon Spine Care in Tualatin, told Becker’s in December.
As of Feb. 10, President Trump has announced 25% tariffs against Mexico and Canada and hit China with 10% tariffs.
While Mexico and Canada have been negotiating with President Trump to remove the levies, China has yet to make an exception.
During the first Trump administration, tariffs struggled to lower prices for Americans and did not bring jobs back to the U.S.
A Feb. 10 Forbes report outlined four ways that small businesses can prepare for this round of tariffs. They are:
1. Review supplier contracts. Businesses should review current contracts in the wake of tariffs and ensure that they are still getting the best deal possible. If prices are too high, small businesses should consider finding new, more affordable suppliers.
2. Make a contingency plan. Decide what products could be impacted by tariffs, and make a plan for if the worst happens.
3. Invest in new technology. Data analytics platforms and automation can create smoother, more efficient operations.
4. Manage cash flow. Tariffs could make needed goods more expensive, so it is important to have resources on hand to cover rising costs.