AHA Requests Tariff Exceptions for Vital Medicines and Medical Devices
TL/DR –
The American Hospital Association (AHA) has requested exemptions for vital medical products from the US Trade Representative’s proposed duties on certain economies, arguing that such exceptions are critical for goods used in hospitals, especially those that are difficult to produce sustainably domestically. The AHA points out that the US healthcare system relies significantly on international sources for many medical supplies, and tariffs could disrupt the availability of essential goods and increase the costs of delivering care in hospitals. It further urges the administration to preserve the Nairobi Protocol, which ensures access to imported medical devices that deliver better outcomes for patients with chronic conditions and disabilities.
Medical Trade Tariffs: The AHA’s Standpoint and Request for Exemptions
The American Hospital Association (AHA), representing over 5,000 medical institutions, affiliates, and healthcare leaders, has voiced its concerns regarding the proposed trade duties by the Office of the United States Trade Representative under Section 301 of the Trade Act of 1974. They endorse the goal of strengthening domestic manufacturing of essential medical supplies but highlight the possible negative impact on patient care due to the potential disruption of supply chains.
The AHA requests that the administration consider exemptions for essential goods used in healthcare settings, particularly those used in high volumes but challenging to produce domestically. The exemption appeal covers vital medications, medical devices, personal protective equipment (PPE), and other critical supplies essential for patient care.
The AHA supports efforts to eliminate trade practices that confer undue advantages to other economies and works tirelessly to remove forced labor from their supply chains. However, the association also underscores the potential disruptions to the supply of crucial diagnostic and treatment tools due to broad tariffs and possible retaliatory actions.
Despite ongoing domestic supply chain development, the U.S healthcare system still relies heavily on international sources for many essential medical supplies. AHA’s analysis of Census Bureau data highlights that approximately 49% of medical devices in the U.S are imported. Additionally, nearly 70% of devices marketed in the U.S. are manufactured overseas. These figures underline a significant reliance on international sources for healthcare supplies.
The AHA also urges for the preservation of the Nairobi Protocol, which ensures access to imported medical devices for better overall patient care. Duty-free treatment for qualifying products is crucial for affordable access to life-saving devices for patients and their families.
Lastly, the AHA expresses concern about the potential impact of tariffs on the cost of care delivery in hospitals and health systems. With 82% of healthcare experts predicting a tariff-related expense increase of at least 15%, and 90% of supply chain professionals predicting procurement disruptions, the potential financial burden on hospitals is substantial.
The AHA welcomes further discussions to find a balance between the administration’s goals and maintaining access to vital healthcare supplies. The association remains dedicated to their core mission of providing healing and hope.
Contact: ademehin@aha.org
Signed,
Akinluwa (Akin) A. Demehin
Vice President
Quality and Safety Policy
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