President Donald Trump is set to impose tariffs on certain goods from Mexico, Canada and China beginning Feb. 1, White House Secretary Karoline Leavitt confirmed Jan. 31.
Here are seven takeaways for healthcare leaders:
1. The U.S. will impose a 25% levy on goods from Mexico and Canada, and a 10% tariff on imports from China. Ms. Leavitt did not confirm whether there would be exemptions, though she stated that a full list of imports subject to the tariffs will be published Feb. 1. A source familiar with the plans suggested exemptions will be "few and far between," according to Reuters.
The president told reporters at the Oval Office he intends to impose tariffs on "all forms of medicine and pharmaceuticals," in the coming weeks, according to CBS News.
2. Ms. Leavitt said in a press briefing that the tariffs are in response to the countries allowing "an unprecedented invasion of illegal fentanyl that is killing American citizens, and also illegal immigrants into our country."
3. President Trump has indicated the tariffs could be raised in the future, though certain sectors, like oil, might be exempt, The New York Times reported Jan. 31.
4. The tariffs are expected to affect a significant portion of U.S. medical devices, as about 69% of U.S.-marketed medical devices are manufactured entirely outside of the U.S., according to Medical Device Network. In 2023, medical equipment was among the 10 top U.S. imports from Mexico, accounting for $13.6 billion in goods, according to Census Bureau data cited by AP. Additionally, about 13.6% of U.S.-marketed medical devices are manufactured in China. As a result, the healthcare sector could experience medical device price increases and supply disruptions.
5. In addition, generic drugs could face further supply challenges. The U.S. imports a substantial amount of active pharmaceutical ingredients from China and any tariffs on these imports could increase drug costs and exacerbate shortages.
6. President Trump also shared intentions to introduce a "tariff wall" around pharmaceuticals, with the goal of encouraging domestic pharmaceutical manufacturing, according to NBC News.
7. The broader impact of the tariffs are expected to be significant, as Canada, Mexico and China represent the country's three largest trading partners. The automotive, agricultural and energy sectors could be among the industries most affected, disrupting supply chains, raising consumer prices and slowing economic growth. President Trump's decision to impose the tariffs has sparked warnings from Canadian and Mexican officials, who have vowed to retaliate by imposing tariffs on U.S. imports, according to the Times report. "If the United States moves ahead, Canada's ready with a forceful and immediate response," Canadian Prime Minister Justin Trudeau wrote in a Jan. 31 post on X.