The Trump administration has continually defended its actions, citing section 301 of the Trade Act of 1974, which authorizes the president to take any appropriate action, including retaliation, against policies of a foreign government that violate international trade agreements and restrict or are considered a threat to U.S. commerce through their actions.

Several manufacturers have expressed opposition to the tariffs, fearing the onset would exacerbate burdens already felt by aluminum and steel imports and leading to an unfair playing field by creating competitive material disadvantages for U.S. companies in Chinese and foreign markets.


Testifying in May before the Section 301 committee, members of the National Electrical Manufacturers Association (NEMA), the parent company of MITA, urged Trump and the Office of the United States Trade Representative to reconsider, explaining that many products are imported from Chinese manufacturers to manufacturing facilities in the U.S. only to be transformed and re-exported back to China.

The implementation of the tariffs would thereby create a tax on both sides of a company’s supply chain for its products that would cause many to seek production outside the U.S.

A survey of leading manufacturers comprising more than 90 percent of the medical imaging global market calculated an estimated loss of more than $138 million annually for American device makers of products and components affected by the tariffs.

“While we appreciate the administration announcing late last week an exemption process, for our member companies this information couldn't come soon enough as many begin to plan for what amounts to a tax on inter-company transfers," said Hope. "My advice for imaging stakeholders is to help MITA make its case to the administration. We believe with an exemption process now in place, the imaging community can collectively make its case to the administration to protect research and development on behalf of our patients.”

Steve Holloway, a principal analyst for Signify Research, echoes this sentiment, saying the back-and-forth nature and uncertainty attached to the tariffs have left providers with limited time to adjust to the impact on their supply chains. The complexity and specialization required for manufacturing advanced modalities such as MR and CT also means that such changes require long periods of time to complete, often years.

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