Medtech industry warns U.S. tariffs risk innovation, patient care
WASHINGTON, D.C., UNITED STATES — The medical device industry is ramping up efforts to secure exemptions from looming United States tariffs, warning that increased costs could stifle innovation and harm patients.
The medical device trade organization AdvaMed says that import tariffs would negatively affect American companies and lead to higher healthcare costs for both public budgets and healthcare providers.
Tariffs risk U.S. medtech leadership and innovation
AdvaMed CEO, Scott Whitaker warns that proposed tariffs could undermine America’s dominance in medical technology by giving foreign competitors an unfair advantage.
Job reductions alongside decreased research and development activities become likely when U.S. firms need to bear the expenses stemming from Chinese retaliatory actions and this scenario puts at risk advances such as AI diagnostic systems.
Small businesses, which make up 80% of medtech companies and startups, face existential risks. Whitaker notes that startups often rely on single products, and higher costs could drive them out of the market.
The resulting decline in innovation could delay life-saving treatments, from advanced diabetes care to faster cancer detection.
Patients and taxpayers bear the financial burden
Tariffs would inflate costs for Medicare, Medicaid, and the U.S. Department of Veteran Affairs, straining already stretched federal health budgets.
Whitaker emphasizes that medical devices have historically been exempt from tariffs due to their humanitarian role, a principle now at risk.
Patients could face delayed surgeries, limited access to new technologies, and higher out-of-pocket expenses.
“Medtech is critical to making America healthy again. Longer term, patients could miss out on the next greatest innovation, such as an AI-enabled tool to diagnose breast cancer or prostate cancer earlier, with greater accuracy than ever before,” Whitaker wrote, stressing that policies should not worsen financial burdens for vulnerable populations.
AdvaMed urges a “zero for zero” tariff agreement to protect innovation and healthcare affordability.
As trade negotiations continue, AdvaMed’s push for exemptions highlights the high stakes for both the economy and public health. Without relief, the industry warns of lasting damage to U.S. competitiveness and patient outcomes.
