The American Hospital Association (AHA) sent a letter on June 28 to the U.S. Trade Representative (USTR) addressing the proposed increase in Section 301 tariffs for goods manufactured in China, including health care products. In its letter, the AHA highlighted the challenges associated with relying on tariffs to strengthen the supply chain, particularly for goods that are specifically designed for safety or would require significant internal adjustments to ensure the safety of switching to a new manufacturer.
For example, switching to a different manufacturer for N95 respirators would necessitate additional fit testing, which would create additional costs and delays for healthcare providers. The AHA urged the USTR to only implement tariffs if there is adequate manufacturing capacity outside of China to provide viable alternatives for healthcare providers. It also called upon the USTR to consider the financial strain that additional tariffs would place on hospitals and other healthcare providers already facing financial difficulties.
The AHA recommended limiting the number of products subject to tariffs or reducing the amount of tariffs imposed to alleviate the financial burden. Additionally, it proposed collaboration between the USTR, the Food and Drug Administration (FDA), and healthcare supply leaders to identify products for which changing manufacturers would create challenges for hospitals and healthcare providers or would encourage the use of less safe products. These products should be excluded from the tariffs to maintain the safety and reliability of healthcare goods in the market.