HIDA
By Kathryn DiBitetto, Vice President of Government Affairs
Lawmakers on Capitol Hill have expressed growing concerns about the administration’s tariff strategy and its impact on the nation’s medical supply chain.
During a recent congressional hearing with U.S. Trade Representative Jamieson Greer, Rep. Nicole Malliotakis (RNY) advocated for the Medical Supply Chain Resiliency Act. The legislation would give the administration tools to “establish trusted trade partnerships with reliable allies to eliminate tariffs and trade barriers.” Ambassador Greer acknowledged that such congressional tools “could be helpful” as part of efforts to support reshoring and supply chain security.
Similarly, Rep. Mike Carey (ROH) underscored that “exempting medical supplies from trusted trading partners is critical” to ensuring providers have access to costeffective, lifesaving devices, and pressed USTR to prevent further tariffrelated cost increases.
Congress’s heightened engagement comes at a moment when the foundation for tariff policy is shifting and new duties are under active consideration.
Out with the old, in with the new
In February the U.S. Supreme Court ruled that the International Emergency Economic Powers Act does not authorize the president to impose tariffs. Although the ruling removed a major legal basis for earlier tariff actions, it did not halt tariff policy.
Instead, it shifted the administration’s strategy to other statutory authorities.
A new executive order imposed a 10% tariff under Section 122 of the Trade Act of 1974, citing “significant imbalances” in the U.S. balance of payments. Section 122 allows broad, temporary tariffs on imports from nearly all countries. These duties expire July 24, 2026.
More tariffs for medical products are on the way
For the healthcare sector, attention is turning to two additional trade authorities – Section 232 and Section 301 – that could specifically target medical products and inputs.
- Section 232: The Department of Commerce’s investigation into personal protective equipment (PPE), medical consumables and medical equipment will soon conclude. New tariffs could follow shortly thereafter.
- Section 301: The U.S. Trade Representative launched two Section 301 investigations that could result in new duties on over 60 countries. These cases typically examine whether foreign policies or practices are “unreasonable” or discriminatory and burden U.S. commerce.
Tariffs continue to strain the medical supply chain
The American Hospital Association recently reported hospital supply expenses rose 9.9% over the past year, while energy market volatility and higher petrochemical costs continue driving up prices for products such as gloves, masks, IV bags, and syringes. HIDA is continuing to engage the Trump Administration, Congress, and federal agencies to highlight how tariffs affect healthcare affordability as the issue gains attention ahead of the midterm elections.