What New Tariffs Could Mean for Health Care

February 06, 2025

Additional tariffs on Mexico, Canada, and China could make it harder to access medications, medical devices, and personal protective equipment, the American Hospital Association (AHA) said this week.

In a letter to President Trump on Tuesday, AHA President and CEO Rick Pollack called for exceptions for medical devices and drugs that are essential to “safe, effective care in America's hospitals, clinics, and other settings.”

“It is especially critical to have these exceptions for products already in shortage and for which production in the countries subject to increased tariffs supply a significant part of the U.S. market,” Pollack said.

Here’s what you need to know:

• The issue:  Health care relies on a global supply chain for medical devices, drugs, personal protective equipment, and other products that are integral to safe patient care.
• Key details:  Earlier this month, the Trump administration announced a 25 percent additional tariff on imports from Canada and Mexico and a 10 percent additional tariff on imports from China. Energy resources from Canada would have a lower 10 percent tariff.
  • The administration’s announcement this week noted concerns about fentanyl and its role in America’s overdose crisis.
• Why it matters:  Cancer and cardiovascular medications, immunosuppressives, antibiotics, and raw ingredients for certain drug products are all produced outside of the U.S., Pollack noted.
  • Manufacturing for personal protective equipment like gloves, masks, and gowns also takes place outside of the U.S. and “cannot be easily replaced by domestic manufacturers,” he said.
• What’s next:  The Trump administration announced it would pause the proposed tariffs against Mexico and Canada for 30 days following pledges from both countries related to border security and efforts to address drug trafficking.
• Quotable:  “Despite ongoing efforts to build the domestic supply chain, the U.S. health care system relies significantly on international sources for many drugs and devices needed to both care for patients and protect our health care workers,” Pollack said.

The American Hospital Association’s letter on the proposed tariffs is available online. For additional information, contact John Myers, HAP’s vice president, federal advocacy. For questions or feedback about the health care supply chain, contact Christopher Chamberlain, MS, RN, CHEP, HAP’s vice president, emergency management.