High tariffs on imports from countries like China, Canada and Mexico, have raised concerns for the U.S. health care system, as sustained trade disruption could worsen existing challenges in health care access and affordability. However, a recent 90-day agreement to sharply reduce U.S.-China tariffs may ease some pressures, though uncertainties remain. 

The U.S. relies heavily on foreign suppliers for medical goods. Approximately 75% of available U.S.-marketed medical devices are manufactured out of the country. The earlier 145% tariff on Chinese goods and 25% on Canadian and Mexican imports raised costs for equipment like syringes and ultrasound machines. It was estimated that a 15% hospital cost increase would occur within six months, with 94% of administrators delaying upgrades due to financial strain.  

A potential tariff on pharmaceuticals remains a concern. There are more than 104 active drug shortages in the United States, including for common antibiotics like amoxicillin. India supplies about half of all generic drugs used in the US. However, it depends on China for 80% of its active pharmaceutical ingredients (APIs), the chemical compounds medications are made from. China’s API market, critical to global drug supply, is projected to grow by 7.8% over five years, underscoring U.S. reliance. Tariffs could exacerbate these shortages and raise drug prices by 12.9%, adding $51 billion annually to drug costs. 

On May 12th, President Trump also signed an Executive Order asking drugmakers to bring down the prices Americans pay for prescriptions, to put them in line with prices in other countries. Initially proposed during the first Trump Administration, the policy was blocked by legal challenges and rescinded by the Biden Administration.  

AHPA extends our gratitude to Nikita Leukhin, guest author of this article. 
Nikita is a recent graduate of the Bachelor of Healthcare Management program at Kettering College.