Medtech association AdvaMed went to Capitol Hill today to make the case that the medical device industry should be exempt from the global tariffs pursued by the Trump administration.
AdvaMed’s president and CEO, Scott Whitaker, testified before the Senate’s finance committee during a hearing on the current state of U.S. supply chains, which also included witnesses focused on rare-earth minerals and semiconductor chips, as well as soybeans.
“To be clear, we applaud the president’s efforts to bring more manufacturing back to the U.S. and fix trade imbalances,” Whitaker told the committee. “But the reality is, up to 70% of the medtech used in America is already made in America.”
“The U.S. is the largest medtech market in the world, accounting for 40% of global sales, and it is unquestionably the global leader in innovation,” he added. “If there is a breakthrough in medical technology, chances are it was developed right here. Tariffs could put all of this at risk.”
Whitaker also highlighted the complexity of today’s medical devices—some of which may contain hundreds of different parts, sourced and assembled from multiple countries.
This week, the White House temporarily rolled back tariffs on goods from China, bringing duties down from 145% to 30% for a 90-day period. China, meanwhile, lowered its retaliatory tariffs from 125% to 10%.
“This morning, it was released by some researchers that since the inauguration January 20, Trump administration officials have announced new or revised tariff policies more than 50 times,” said the finance committee’s ranking member, Sen. Ron Wyden, D-Ore. “What happens when you change your mind 50 times?”
“The disruption that's been caused as a result of these tariffs is a challenge—and we don't have the same flexibility, that many people do in the economy, to adjust and change our prices without impacting the healthcare system in a negative way,” Whitaker said.
“We do a nice job in this industry of providing American hospitals with American-made technology, but not all of it,” he added. “In the short term, we can continue to manage that—in the longer term, it will create a crisis.”
Whitaker reiterated the industry’s previous calls for a reciprocal “zero for zero” model when it comes to tariffs on medtech products, through humanitarian exemptions.
“The American medtech industry is a major driver of innovation, economic growth and job creation. However, this is a highly regulated industry—it's not easy to quickly move manufacturing here,” said the committee’s chairman, Sen. Mike Crapo, R-Idaho.
“Moreover, some of the manufacturing entails low-value products that don't generate significant returns. How can we help identify what parts of the supply chain are essential to near-shore, and the other parts that may benefit from tariff relief through trade agreements?” Crapo asked.
“We source things from all over the country, and all over the world as well,” Whitaker said. “From plastics to rubber to tungsten, the list goes on and on.”
“Having open access to those markets—without large tariffs assigned to those—makes it easiest for us to import back into this country, and then finish those products and sell them to hospitals in the U.S.,” he said.
“The current tariff barrier is the biggest challenge we've faced in a long time, relative to accessing all the component parts we need to finish these products and provide them to hospitals.”