In a letter to US trade officials, the association warns that the latest proposed duties could increase hospital costs, disrupt medical device supply chains, and limit access to essential equipment.
The American Hospital Association sent a letter to the Office of the United States Trade Representative on July 6 requesting that medical devices, medications, and other healthcare equipment and supplies be exempted from proposed duties on goods from other nations.
The letter follows the Office of the Trade Representative’s proposed duties on certain economies under section 301 of the Trade Act of 1974.
While the American Hospital Association says it supports the goal of strengthening domestic manufacturing for drugs and medical supplies, the organization notes that the US healthcare system currently relies on international sources for products needed to care for patients and protect healthcare workers.
“We are concerned that broad tariffs on these critical goods—and any retaliatory action from the countries on which tariffs are imposed—could inadvertently disrupt the availability of diagnostic and treatment tools essential to delivering high-quality, safe and effective care,” says Akinluwa A Demehin, vice president of quality and safety policy, in the letter.
Impact on the Medical Technology Supply Chain
According to an analysis by the American Hospital Association, the US imported more than $75 billion in medical devices and supplies in 2024. Data from the Food and Drug Administration indicates that approximately 49% of medical devices used in the US are imported, while other analyses show that nearly 70% of medical devices marketed in the US are manufactured exclusively overseas.
The association expressed particular concern regarding low-margin, high-volume goods that are difficult to produce sustainably using existing domestic capacity. These include single-use blood pressure cuffs, stethoscope covers, sterile drapes, surgical instruments, needles, and syringes.
The American Hospital Association also highlighted the importance of the Nairobi Protocol, which provides duty-free treatment for specific medical devices. This policy helps ensure affordable access to pacemakers, insulin pumps, prosthetic limbs, and cochlear implants for patients with chronic conditions and disabilities.
Financial Consequences for Hospitals
The association says the proposed tariffs could also lead to significant cost increases for healthcare providers. A recent survey cited in the letter found that 82% of healthcare experts expect tariff-related expenses to increase hospital costs by at least 15%, while 90% of supply chain professionals anticipate procurement disruptions.
Because hospital payments are often set in advance by government and private payer contracts, these increased costs cannot be easily adjusted and would be borne directly by the hospitals, according to the association, which notes that these expenses could compound existing financial challenges facing the healthcare industry.
“Building domestic manufacturing capacity is a complex, years-long process entailing significant logistical complexity and resources for manufacturers, distributors and purchasers such as hospitals and health systems,” says Demehin in the letter. “In the meantime, patients’ lives depend on the ready availability of medications, medical devices, equipment and supplies, personal protective equipment, and countless other products necessary to deliver safe and effective care.”
