It is anticipated that the Biden administration will announce new tariffs on medical devices manufactured in China, such as syringes and personal protective equipment, as part of its upcoming trade strategy reveal next week, based on information from two individuals knowledgeable about the matter.
This move is part of a broader strategy by the administration to target strategic sectors in China, including electric vehicles, batteries, solar cells, and medical supplies, with the aim of addressing trade imbalances and protecting American industries
President Joe Biden is set to announce new China tariffs as soon as next week targeting strategic sectors including electric vehicles, solar panels and steel. The size and the scale of the tariffs on medical equipment is unclear.
Initially set at 15%, the tariff rate on medical products was lowered to 7.5% on February 15 as part of the Phase 1 US-China trade agreement. These tariffs could lead to increased costs for healthcare organizations purchasing essential medical consumables in large quantities.
The inclusion of healthcare products in the tariff policy is likely to raise the cost of delivering quality healthcare in the US, hindering the country’s ability to prepare and respond to public health events.
Additionally, the trade war with China, which resulted in tariffs on billions of dollars of imported medical equipment, could have a negative impact on US pandemic preparedness, potentially leading to shortages of crucial medical supplies like personal protective equipment (PPE)
For years, China’s leaders have worried that the country depended too much on foreign sources for everything from medical supplies to microchips and used subsidies, economic targets and other government inducements to emerge as a powerhouse in those important industries.
The COVID pandemic exposed a lack of U.S. production of critical medical equipment from gowns and masks to ventilators and the U.S. turned to China for help to fill the gap.
Imports of syringes from China peaked at $348 million in 2021, but have declined since to about $167 million last year, according to U.S. Census Bureau data.
The White House has not made any comment.