AHA Requests Pricing Exceptions for Certain PPE and Medical Devices

Diving brief:

• The American Hospital Association is calling on the Trump administration to consider tariff exceptions for essential medical equipment, particularly products in short supply and those that make up a significant portion of the U.S. supply.
• The request responds to a Section 232 National Security Investigation this could lead to more tariffs or other trade restrictions on medical supplies, such as diagnostic and treatment tools and personal protective equipment.
• The hospital organization, in a letter submitted Friday as part of the public comment process on the investigation, said he was asking the administration to consider tariff exceptions for certain products as part of an approach that would also include finding ways to build domestic manufacturing capacity, strengthen the supply chain and reduce reliance on international sources, particularly those of U.S. adversaries.

Dive overview:

The United States imported more than $75 billion worth of medical devices and supplies in 2024, according to an AHA analysis of Census Bureau data. The Food and Drug Administration has said that 62% medical devices used in the United States are imported.

The hospital trade group is concerned that new tariffs on PPE and medical consumables and equipment could disrupt the flow of supplies essential to delivering care and protecting patients and hospital staff. Additionally, tariffs and retaliatory measures from other countries could significantly increase hospital costs, the AHA warned.

Some imports are for low-margin items, such as single-use blood pressure cuffs, sterile drapes, surgical instruments and syringes, that are difficult to produce sustainably in the United States, the group said.

PPE is a notable concern, as hospitals are particularly reliant on international sources for equipment. In 2023, Chinese manufacturers supplied the majority of N95 and other respirators, as well as a third of disposable masks, two-thirds of nondisposable masks and 94% of plastic gloves used in health care, according to the letter.

Additionally, medical technology produced in the United States often contains significant international content. The typical infusion pump made in the United States, for example, may contain parts from more than 20 countries, and a magnetic resonance imaging machine may contain parts from 15 countries.

“Reshoring alone cannot provide the supply chain stability necessary to ensure unrestricted access to devices and equipment needed for patient care,” the AHA said.

Medtech trade groups have also raised concerns that more tariffs could hurt the industry, along with AdvaMed. propose a list of policies to mitigate the impact. AdvaMed and the Medical Device Manufacturers Association support reciprocal tariff relief agreements with preferred trading partners.