Healthcare groups urge White House to grant tariff exceptions

The American Hospital Association has called on the Trump administration to grant exceptions to proposed tariffs on medical devices and pharmaceuticals sourced from Mexico, Canada and China. 

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In a letter to President Donald Trump, AHA President and CEO Richard Pollack expressed concerns that the tariffs, which reportedly aim to address drug smuggling and protect American industries, could disrupt the availability of lifesaving medications and essential medical supplies in U.S. hospitals. 

Mr. Pollack emphasized that the U.S. healthcare system relies heavily on imports for critical medications, including cancer drugs, antibiotics and cardiovascular treatments, as well as medical devices such as single-use instruments, anesthesia equipment and personal protective gear. 

The letter points out that many of these items are produced in the countries targeted by the tariffs, including China, which is a major supplier of pharmaceutical ingredients and medical devices. 

The AHA also highlighted the potential risks of tariffs to both patients and healthcare workers. A disruption in the supply chain could lead to shortages of essential medications, putting patient’s lives in jeopardy, the letter stated. Additionally, Mr. Pollack warned that shortages of protective equipment like N95 masks and gloves, largely manufactured in China, could compromise the safety of healthcare workers. 

Mr. Pollack also urged the administration to consider the potentially severe consequences of the tariffs on public health and to work with international partners to ensure vital medical supplies remain accessible. 

The American Society of Health-System Pharmacists echoed similar sentiments in its own letter to the Trump administration, requesting tailored tariff exemptions for active pharmaceutical ingredients, prescription medications and critical medical supplies. 

The ASHP’s letter, issued Feb. 6, also recommended that the administration explore alternative incentives to encourage domestic manufacturing without causing supply chain disruptions that could endanger patient care. According to the group, the tariffs could impact the availability of drugs and medical supplies, especially since many are already in short supply. 

In an email shared with Becker’s, America’s Essential Hospitals said it is “concerned that tariffs could quickly drive up the cost of supplies or cause avoidable shortages of much-needed medications and medical supplies. These outcomes would disproportionately burden essential hospitals, as they already face severe financial challenges because of the safety-net role they play in their communities.”

While some industry groups, including the American Medical Manufacturing Association, support the tariffs on Chinese goods, others in the healthcare sector remain wary of their potential to disrupt the medical supply chain, Politico reported Feb. 4. 

Pharmaceutical Research and Manufacturers of America, which represents the branded drug industry, has cautioned that tariffs on medicines could lead to increased costs and reduced access to essential drugs. The Healthcare Distribution Alliance also voiced concerns, noting that increased tariffs could worsen the financial difficulties facing the generic drug industry and lead to new shortages.

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