The American Hospital Association (AHA) recently sent a letter to the U.S. Trade Representative regarding a proposed increase in Section 301 tariffs for goods produced in China, which would include health care products. The AHA highlighted the challenges of relying on tariffs to strengthen the supply chain, particularly for goods that are uniquely designed for safety or would require significant internal steps to ensure a safe transition to products from different manufacturers. For example, the AHA mentioned the additional fit testing that would be needed for N95 respirators from a different manufacturer.
The AHA urged the USTR to only impose tariffs if there is sufficient manufacturing capacity outside of China to make choices among manufacturers a credible option. Additionally, the USTR was encouraged to consider the impact of tariffs on hospitals and other providers that are already facing financial strain. The AHA recommended limiting the number of products affected by tariffs or reducing the amount of tariffs imposed to lessen the financial burden.
Furthermore, the AHA suggested that the USTR collaborate with the Food and Drug Administration and health care supply leaders to identify products for which a change in manufacturer would create difficulties for hospitals and other providers or would lead to the use of less safe goods. These goods should be excluded from the tariffs to ensure that patient safety is not compromised.