Chinese tariffs could boost price of imaging, sterilization equipment: 4 things to know

The Trump administration's tariffs on $34 billion worth of Chinese goods, which took effect June 6, could cause price increases for various types of medical equipment, according to USA Today.

Here are four things to know:

1. The 25 percent tariffs on Chinese goods apply to numerous components used for sterilization and medical imaging equipment, including CT scanners, EKGs and X-ray tubes.

2. Boston Scientific CFO Daniel Brennan told investors in April: "We do not manufacture in China, but we do purchase a small percentage of component inventory from China, so there may be slight pressure on our cost of goods sold if U.S. tariffs are applied to Chinese manufactured goods," according to USA Today.

3. While U.S. healthcare providers may not see any immediate effects from the tariffs, equipment price hikes could eventually cause higher medical costs.

4. Tom Derrick, co-founder and senior vice president of marketing for OpenMarkets, believes healthcare providers should take proper precautions for the tariffs by identifying alternative options for equipment purchasing.

"Hospitals, health systems and ASC/Imaging Centers need to be prepared for an increase in the price of sterilization and imaging equipment manufactured in China," he wrote in a recent OpenMarkets blog post. "There's simply too much uncertainty over which product models will qualify for the 25 percent tariff and how this will impact pricing. … It's time to establish your backup options." 

More articles on supply chain: 

Boston Scientific acquires Cryterion Medical for $202M
Influx of medical waste washes up on Florida beach
Red Cross issues urgent call for blood donations, especially type O

© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Featured Webinars

Featured Whitepapers