In April 2025, a coalition of 26 House Democrats, led by Representatives Doris Matsui and Brad Schneider, addressed a letter to U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. The lawmakers expressed concern that recent tariffs could severely disrupt the healthcare supply chain, potentially leading to shortages of critical medical products and increased costs for patients and providers.
The letter emphasized that disruptions in the supply of essential medical products could force healthcare providers to make difficult rationing decisions, delay treatments, and substitute more effective medicines with less effective alternatives, endangering patient health.
Although pharmaceuticals were excluded from the first round, President Trump indicated plans to impose additional tariffs soon.
Healthcare Supply Chain Industry Concerns Over Tariffs
Healthcare industry leaders have voiced apprehension regarding the impact of tariffs on the healthcare supply chain. A Black Book Market Research survey revealed that 82% of healthcare supply chain professionals anticipate a cost increase of at least 15% for hospitals and health systems within six months due to heightened import expenses. Additionally, 69% predict a minimum 10% rise in pharmaceutical costs as a result of tariffs on active pharmaceutical ingredients.
The Healthcare Distribution Alliance (HDA) highlighted that pharmaceutical tariffs could strain the supply chain, increasing medical product costs or prompting manufacturers to exit the market. The HDA urged the administration to consider exemptions for pharmaceutical products and to implement long timelines to maintain the efficient delivery of approximately 10 million medicines and healthcare products daily.
Similarly, the Association for Accessible Medicines (AAM) warned that tariffs could exacerbate existing drug shortages. Particularly in the generic drug market, which operates on thin profit margins. AAM President and CEO John Murphy III noted that tariffs might force generic manufacturers to exit struggling markets, reducing access to affordable medications.
Potential Impact on Hospitals and Patients
Hospitals and healthcare providers are bracing for the financial implications of the tariffs. Medical supplies constitute approximately 10.5% of the average hospital’s budget. The American Hospital Association (AHA) expressed concern that higher prices for high-volume medical supplies, such as personal protective equipment and syringes, could exacerbate financial pressures on hospitals, potentially leading to service reductions or closures, especially in rural and underserved areas.
Furthermore, 90% of hospital finance executives surveyed anticipate the need to shift increased costs to insurers and patients, resulting in higher service charges. This cost escalation could limit patient access to necessary medical treatments and services.
Calls for Exemptions and Strategic Investments For Supply Chain Resilience
Healthcare organizations are advocating for the administration to reconsider the tariffs on medical products. They recommend establishing exemptions for critical medical supplies and implementing long-term strategies to bolster domestic manufacturing. The HDA supports policies that encourage supply chain resilience and incentivize domestic production. They do it through targeted tax relief and long-term federal contracts.
AdvaMed, representing medical device manufacturers, also urged the administration to exempt medical and dental supplies from tariffs. They did it to prevent further escalation of healthcare costs and ensure patient access to essential products. They highlighted that increased costs on medical supplies could impede treatment outcomes, hinder innovation, and strain providers, particularly in rural and medically underserved areas.
Conclusion
The proposed tariffs pose significant risks to the healthcare supply chain, potentially leading to increased costs, product shortages, and reduced access to essential medical treatments. Lawmakers and industry leaders are urging the Trump administration to consider exemptions for critical medical products and to invest strategically in domestic manufacturing to enhance supply chain resilience. Protecting the integrity of the healthcare supply chain is paramount to ensuring the health and well-being of patients across the United States.
