Latest Updates:
July 8, 2025
On July 7, 2025, President Trump issued an executive order extending the pause in the implementation of reciprocal tariffs until August 1, 2025.
These reciprocal tariffs were initially announced on April 2, 2025, under the authority of the International Emergency Economic Powers Act (IEEPA). They have since been challenged in court but remain in effect while the cases are appealed.
The President also sent tariff notice letters to 14 nations, with additional letters expected as negotiations continue. The letters announce new reciprocal tariff rates that would be imposed on August 1 if trade deals are not reached by that date.
Among nations of interest to the medical supply chain that have received letters, the new reciprocal tariff rates are:
These rates are intended to replace both the rates announced on April 2 and the “universal” 10% tariff rate set when the pause was announced.
Original News
April 14, 2025, the U.S. medical industry is navigating significant changes due to newly imposed tariffs on imported medical supplies and equipment. Here’s an overview of the current situation:
The U.S. government has implemented a 10% universal baseline tariff on imports, with higher rates for specific countries: 25% on goods from Mexico and Canada, and 10% on imports from China. Becker’s Hospital Review+1Healthcare Dive+1
These tariffs affect a broad range of medical products, including diagnostic devices, surgical instruments, and personal protective equipment.
Approximately 75% of U.S.-marketed medical devices, many of which are manufactured abroad, are impacted by these tariffs. This is expected to lead to increased costs and potential supply chain disruptions. MedicalEconomics
Major medical device companies are bracing for these changes, which could reduce sales and increase operational costs. Medical Technology News | MedTech Dive
Organizations like the American Hospital Association (AHA) are urging the administration to grant exceptions for essential medical devices and pharmaceuticals, especially those already in shortage. American Hospital Association
The Advanced Medical Technology Association (AdvaMed) is advocating for exemptions similar to those provided during previous tariff implementations, highlighting the risk of supply chain disruptions and patient care impacts. AdvaMed®
The situation remains fluid, with ongoing discussions about potential exemptions and adjustments.
Medical distribution companies are encouraged to stay informed and consider strategies to mitigate the impact of these tariffs, such as diversifying supply sources or adjusting procurement practices.
Tariffs are taxes imposed by a government on imported goods (and sometimes exported goods). They’re typically charged as a percentage of the product’s value or as a fixed fee per unit.
Protect domestic industries by making imported goods more expensive.
Generate revenue for the government.
Influence trade behavior by encouraging local sourcing or discouraging certain imports.
Tariffs can affect:
The cost of medical supplies (e.g., gloves, test kits, diagnostic equipment).
Sourcing decisions (e.g., importing from a different country to avoid tariffs).
Pricing for all customers, like hospitals, clinics, or wellness programs.
Why we must stay informed about tariffs:
They directly affect product pricing and profit margins.
Unexpected tariffs can lead to supply delays or changes.
Being informed helps with budget planning and supply chain adjustments.