Article
What took effect
The U.S. Trade Representative announced the duties on July 23 after a Section 301 investigation into whether trading partners ban imports made with forced labor. Countries that have committed to adopt and enforce such a ban face a 10% rate. Those that USTR found had not adopted one face 12.5%. USTR says the 60 economies covered account for 99.4% of U.S. imports.
The action does carve some products out. According to the AHA, the notice excludes goods already subject to Section 232 tariffs, goods that qualify under the U.S.-Mexico-Canada Agreement, and certain pharmaceuticals and pharmaceutical ingredients. Medical devices and supplies were not named among the exclusions.
Why hospitals should pay attention
Earlier this month the AHA asked USTR to exempt medications, devices and other health care equipment and supplies, arguing that U.S. health care relies heavily on foreign sources for many of these products. That broad exemption did not happen. The pharmaceutical carve-out helps, but it is partial, and many disposables, instruments and equipment components are made abroad.
Suppliers and distributors will decide how much of the new duty to absorb and how much to pass on. Some may invoke contract clauses that allow price changes tied to tariffs or other government actions. Hospitals working with thin operating margins have little room to absorb a broad price increase on imported supplies.
A practical plan for supply chain and finance
- Map country of origin. Ask your group purchasing organization and top distributors for origin data on your highest-spend and highest-volume items, and check which fall under the exclusions.
- Read the contract language. Identify which agreements allow tariff-related price increases, what notice is required and whether you can audit the pass-through.
- Prioritize clinical risk. Flag single-source items that could face shortages if suppliers shift production, and identify approved alternatives in advance.
- Bring clinicians in early. Value analysis committees should be ready to review substitutions quickly.
- Update the forecast. Build a supply expense scenario that assumes partial pass-through over the next two quarters.
Archive entry for Jul 25, 2026, added Nov. 11, 2026.
Sources
- USTR implements new tariffs on 60 trading partners (AHA News, Jul 24, 2026)
- Fact Sheet: USTR Section 301 Action in Response to the Failure of 60 Economies to Ban Imports Produced with Forced Labor (USTR, Jul 23, 2026)
- AHA comments on proposed tariffs on medications, medical devices (AHA News, Jul 6, 2026)