Statement on Increased Tariffs on Medical Products from China

By Soumi Saha, Senior Vice President, Government Affairs, Premier Inc.

While Premier generally supports the reinstatement of tariffs to foster domestic ingenuity and bolster supply chain resilience for healthcare, today’s final actions from the U.S. Trade Representative (USTR) are a mixed bag. In certain cases, Premier applauds USTR’s decision to adopt our recommendations for a gradual 'glidepath' approach to the implementation of tariffs on critical healthcare products such as facemasks and excluding certain critical products with no known manufacturing outside of China such as enteral feeding syringes. This thoughtful approach reflects a commitment to balancing the need for supply chain resilience with the realities of healthcare delivery and finances.

On the other hand, Premier is disappointed that USTR failed to adopt our recommendations for other elements of the tariffs and is expediting timelines for gloves, increasing tariff rates for needles and syringes, and not expanding tariffs to other personal protective equipment (PPE) categories with significant domestic sourcing such as isolation gowns.

Premier firmly believes that true supply chain resilience necessitates a comprehensive strategy that addresses the broader implications of trade policy on healthcare essentials, especially in times of public health crises or national security threats. Therefore, Premier urges Congress to take decisive action by advancing legislation to establish trade partnerships with trusted allies and encourages domestic manufacturing of critical medical supplies through tax incentives.

Premier looks forward to continuing to work with the Administration and Congress to ensure that America's healthcare system is well-prepared to navigate future challenges, bolstered by resilient supply chains and sustainable manufacturing practices.