President Trump’s new tariffs on China are critical in bolstering America’s healthcare security and supply chain resilience. While some healthcare organizations have voiced concerns, these new measures and additional targeted tariffs are not just essential but urgent for protecting our national interests and ensuring a stable supply of critical medical products.
Public opinion is behind the president’s actions. A dozen public opinion surveys recently audited by the New York Times found that polling tends to be split evenly on new tariffs. Yet, support dramatically shifts in favor of tariffs when directed at China.
Leading Group Purchasing Organizations and medical product distributors invest heavily in growth and acquisitions, celebrating soaring stock values. These same organizations could strategically allocate resources to bolster domestic production and forge alliances with American manufacturers. This approach could reduce reliance on imports and mitigate the effect of tariffs altogether.
The tariffs will incentivize companies to invest in U.S.-based production, reducing our vulnerability to foreign disruptions. In the past decade, in the face of disasters and health emergencies, America has faced severe shortages of critical medical supplies due to over-reliance on Chinese imports. By fostering domestic manufacturing, we can ensure vital medical products are available when we need them most.
Starting March 4, the economic playing field became even more even. The president announced a new 10 percent tariff on all Chinese goods. Once combined with existing tariffs, Chinese medical gloves will be taxed at 70 percent at these new rates, masks and respirators at 45 percent, and syringes at 120 percent. These tariffs are beginning to reverse years of exploitative trade practices by bad actors. The bottom line effect of these tariffs on large healthcare systems is modest compared to the value and security of a domestic supply.
Critics argue that a global supply chain provides redundancy, but the United States’ overdependence on foreign sources exposes it to geopolitical tensions and trade restrictions. For example, the majority of exam gloves used in America come from Asia or are routed through third-party, non-democratic nations. Building up domestic manufacturing ensures a reliable baseline supply, providing reassurance about the stability of our healthcare supply chain.
This strategic shift enhances national security, boosts the domestic economy, and creates jobs. The administration recognizes that economic incentives are needed to make this transition viable, aligning with bipartisan congressional support for strengthening domestic manufacturing capabilities.
While some claim tariffs affect healthcare costs, the long-term benefits outweigh short-term adjustments. Domestic production can stabilize prices and potentially lower the costs of federal healthcare programs like the Veterans Administration, Medicare and Medicaid.
This approach contributes to the sustainability of our healthcare system. Over time, stabilizing prices through local production could lower the costs of federal healthcare programs than on unpredictable international markets.
Some healthcare leaders waffle on tariffs and have called for tariff exclusions on critical medical supplies, claiming a lack of quantity of resources needed for the industry. However, an exclusion process has consistently been a loophole that allows companies to continue outsourcing critical manufacturing overseas and curtails investment in domestic manufacturing.
Instead of exclusions, policymakers should focus on providing tax incentives and Medicare payment adjustments for companies willing to invest and manufacture in U.S.-based production facilities. This approach aligns with the broader goal of building a resilient domestic supply chain and ensures that American ingenuity and manufacturing prowess are at the forefront of our healthcare industry.
The healthcare supply chain is too important to leave at the mercy of foreign suppliers whose priorities may not align with ours. Targeted tariffs are a key component of a larger strategy to reduce dependency on imports and ensure American healthcare providers have reliable access to critical supplies.
Trump’s approach will protect American patients and strengthen our national security for years. By reshoring production to the United States, we reduce our exposure to international risks and create a more robust and dynamic domestic manufacturing industry.
This strategy will lead to innovation and significant job creation, fostering a healthcare system that is better prepared to face future challenges. Domestic makers of critical medical supplies stand ready to compete against global competition, so long as it’s a fair fight.
