The American Hospital Association has asked the Office of the United States Trade Representative to exempt vital medications, medical devices and PPE from proposed tariffs stemming from a Section 301 investigation into countries’ failure to enforce forced labor import bans, according to a July 6 letter.
The request builds on the USTR’s June 2 finding that 54 of 60 investigated economies lack a forced labor import prohibition entirely, with six others failing to enforce prohibitions already on the books, and follows months of AHA pushback on trade actions that could raise hospital supply costs, including an October 2025 warning that tariffs could disrupt access to PPE, diagnostic tools and single-use instruments.
Here are five things to know:
- The AHA said exceptions are especially critical for low-margin, high-volume goods that are difficult to produce domestically, citing an association analysis that found the U.S. imported more than $75 billion in medical devices and supplies in 2024.
- About 49% of medical devices used in the U.S. are imported, according to the FDA, while a separate analysis cited in the letter found nearly 70% of medical devices marketed in the U.S. are manufactured exclusively overseas. An estimated 30% of the U.S. medical technology market is imported, with much higher shares of PPE sourced internationally.
- In 2023, Chinese manufacturers supplied the majority of N95 and other respirators used in U.S. healthcare, along with a third of disposable face masks, two-thirds of nondisposable face masks and 94% of plastic gloves, according to the AHA.
- The AHA urged the administration to preserve the Nairobi Protocol, which provides duty-free treatment for devices such as pacemakers, insulin pumps, prosthetic limbs and cochlear implants used by patients with chronic conditions and disabilities.
- Eighty-two percent of healthcare experts expect tariff-related expenses to raise hospital costs by at least 15%, and 90% of supply chain professionals expect procurement disruptions, according to a survey cited in the letter. Because hospital payments are set by government and private payer contracts in advance, the AHA said, those cost increases would fall directly on hospitals.
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