AdvaMed, the medtech industry trade group, is calling for an exemption from newly announced tariffs on medical products from Canada, Mexico, and China, warning that the added costs could disrupt the medical technology supply chain and hinder innovation.
Scott Whitaker, AdvaMed’s president and CEO, said the organization has voiced its concerns to the Trump administration, citing risks to patient care and the industry’s ability to adapt quickly to supply chain disruptions.
“During the president’s first term, with respect to the tariffs on China, a carve-out was provided for much of the medtech sector, given the risks to the U.S. hospital supply chain,” Whitaker said. “We maintain that the potential supply chain disruption and its downstream effects on patients remain a risk, should tariffs be implemented. Shortages of critical medical technologies are a real concern in our initial modeling.”
AdvaMed argues that the heavily regulated nature of the industry makes it difficult for companies to quickly shift production in response to tariffs. Manufacturing changes often require FDA approval, adding complexity to relocation efforts.
Whitaker compared the impact of tariffs to that of an excise tax, suggesting they could lead to reduced research and development investment, higher costs for patients and payors, and potential job losses.
The group also warned that higher tariffs could ultimately weaken the U.S. medtech industry’s global standing by making foreign competitors more attractive.
AdvaMed plans to continue its advocacy efforts, emphasizing the potential risks tariffs pose to the availability of medical devices and the broader healthcare system.
