Article
What is on the table
In June, the Office of the U.S. Trade Representative issued determinations and requested comments on duties targeting certain economies for failing to ban imports of goods made with forced labor. On July 6, the AHA filed comments asking that medications, medical devices, equipment, supplies and protective equipment be excluded, with special attention to low-margin, high-volume items.
The association said hospitals support stronger domestic manufacturing and removing forced labor from supply chains, but warned that building U.S. capacity takes years. It also asked trade officials to keep the Nairobi Protocol, which allows duty-free treatment for qualifying devices such as pacemakers, insulin pumps, prosthetic limbs and cochlear implants.
How exposed hospitals are
The AHA’s letter lays out the dependence on foreign sources:
- The U.S. imported more than $75 billion in medical devices and supplies in 2024, based on an AHA analysis of Census data.
- FDA estimates about 49% of devices used in the U.S. are imported.
- In 2023, Chinese manufacturers supplied most respirators used in health care and 94% of plastic gloves.
The letter also cited survey findings that 90% of supply chain professionals expect procurement disruptions and 82% of health care experts expect tariff-related costs to raise hospital expenses by at least 15%. Hospitals have little room to pass those costs along, because most payment rates are set in advance by Medicare, Medicaid or commercial contracts.
Steps for supply chain and finance leaders
Whether or not exemptions are granted, tariff policy is now a recurring budget risk. Practical moves include:
- Map country of origin. Work with distributors and group purchasing organizations to identify which of your top 200 items come from affected economies, including components and raw materials.
- Review contract terms. Check whether supplier agreements allow tariff surcharges and how quickly prices can change.
- Build a range. Model fiscal 2027 supply expense under no tariff, partial tariff and full tariff scenarios, and share the range with the board.
- Protect clinical continuity. For critical items with a single source, qualify alternates now and involve clinicians early so substitutions do not affect safety.
Archive entry for Jul 6, 2026, added Nov. 11, 2026.