Tariffs placed on medical devices could impede patient access to these lifesaving products, an argument made by Scott Whitaker, President and CEO of the Advanced Medical Technology Association (AdvaMed; Washington) in a recent Senate hearing. Whitaker called for a zero-for-zero approach to tariffs on medical devices and diagnostics, which he said would ensure that patients are not jeopardized by the ongoing trade disputes between the U.S. and other nations.
During his May 14 testimony before the Senate Finance Committee, Whitaker stated that medical device manufacturing
The Trump administration has recently announced that trade talks with the U.K. and China are making progress, although no deals are yet in place. These tariffs include a baseline rate of 10% across all nations, with nation-specific tariffs to be applied on top of the 10% baseline. In the case of China, this amounts to a tariff rate of 145%, although representatives from the two sides met in Switzerland recently to forge an agreement that would reduce or eliminate the tariffs.
The White House announced a 90-day pause on tariffs in early April, a suspension AdvaMed supported in an April 9 statement indicating that the short-term relief was welcome. However, AdvaMed had also signed an April 1 letter to the White House that was signed by nine other organizations, including America’s Essential Hospitals. The letter stated that the tariffs could disrupt the availability of medical devices and dental equipment, leading to rising costs and crimped availability. The effect could be more damaging for small and rural hospitals, with costs expected to rise by 15% or greater.
In his May 14 Senate testimony, Whitaker stated that the impact of the medical device and diagnostics industries on health care in the U.S. is not widely appreciated. However, he said this applies across the globe as well, given that devices manufactured in the U.S. are crucial for patient care in nations around the world. In addition to cardiology devices and artificial hips and knees, the U.S. is the source of artificial intelligence (AI) products that improve the diagnostic power of imaging systems.
Whitaker said a recent study found that AI provides a 29% increase in the detection of breast cancer, a finding he indicated will be replicated in the future. “Simply put, we are the backbone of the health care system, the engine that makes hospitals run,” he stated.
Nations have historically avoided placing tariffs on the device industry’s output, Whitaker said, because of the importance of medical technology in saving lives. In 2024, tariffs on medical devices shipped to Europe were 1.3% while products shipped to Japan and Canada were subject to tariffs of 1%. Whitaker said AdvaMed is supportive of the Trump administration’s goal of addressing long-standing and unfair trade imbalances, and lauded the President’s emphasis on restoring manufacturing back to the U.S.
However, more than 70% of the technology used in U.S. hospitals is made in the U.S., a figure Whitaker said is likely to increase. Device makers located in the U.S. account for 40% of global sales, metrics that demonstrate that this industry is a uniquely American success story that is jeopardized by tariffs. Many of these products rely on components and materials imported from other nations, a fact which combines with the reliance on Medicare spending to leave industry uniquely vulnerable to the negative effects of higher tariff rates.
Whitaker applauded the administration’s 90-day pause on tariffs and the news regarding talks with China, but said the importance of medical technology to patient care calls for “maximum flexibility” with regard to tariffs. He requested that the Senate Finance Committee and the White House provide a zero-to-zero tariff structure for medical devices and diagnostics in trade talks with other nations, adding that AdvaMed stands ready to work with the White House “on alternative ways to restore fairness to trade policies that negative impact the American medtech sector.”