US devicemakers call for tax incentives, tariffs to bolster production: 4 things to know

An alliance of U.S. medical equipment manufacturers is urging lawmakers to implement tax incentives, enforce stricter labor and environment standards and impose higher tariffs on foreign medical supplies to bolster domestic production, according to an Nov. 5 news release from the American Medical Manufacturers Association. 

Here are four things to know: 

  1. Eric Axel, executive director of the AMMA, pointed to growing disruptions in global supply chains, citing hurricanes and geopolitical tensions as examples of the increasing volatility that threatens the availability of essential medical products. 

  2. Mr. Axel also emphasized ethical concerns surrounding foreign-produced goods, including potential for forced labor being used and environmental damage in non-democratic nations. He also argued that U.S. consumers are increasingly aware of the labor and environmental standards associated with the products they buy. 

  3. While the AMMA said it does not advocate for massive government stockpiles of medical supplies, Mr. Axel underscored the importance of maintaining reserves and diversifying sources of production to avoid catastrophic shortages, as seen during recent natural disasters. 

  4. To address these challenges, the organization has called for stronger trade policies, including high tariffs on foreign imports, and more tax incentives to encourage U.S. manufacturers to invest in domestic production.

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