Tariffs – International Trade Policy
On April 4th, 2018 the Administration released a list of Chinese imports that would be subject to a new, 25% tariff as a result of an investigation conducted under Section 301 of the Trade Act of 1974. The new Section 301 tariffs would apply to over 1,300 Chinese imports. Among those listed are a number of products that healthcare providers rely on to conduct ongoing healthcare procedures and respond to public health events.
What Members Need to Know
The inclusion of healthcare products in the United States Trade Representative (USTR) Section 301 proposed tariff policy will increase the cost of delivering quality and efficient healthcare in the United States and hinder our country’s ability to prepare and respond to public health events.
A significant number of medical products critical to everyday procedures, lifesaving surgeries, as well as products used for broad public health preparedness efforts are made outside of the United States. It is important for both Congress and the Administration to understand the complexities of the U.S. healthcare supply chain, so tariffs and trade policies do not create unintentional supply chain disruptions and product shortages
The USTR announced a final list of tariffs which applied to 818 out of the 1,333 products that were included on the original proposed list. A 25% tariff on these products is in effect as of July 6th, 2018. The USTR included an additional set of 284 new products to be reviewed as possible additions to the Section 301 lists. HIDA Government Affairs continues to monitor the situation and is working with partners in Congress and at USTR to work toward the common goal of keeping healthcare products affordable.