Tariffs: Added Strain On The US Health Care System

From The Health Affairs Forefront

By Jerry Avorn, MD and Aaron S. Kesselheim, MD, JD, MPH

SUMMARY: This Health Affairs Forefront piece examines the potential impact of sweeping Trump administration tariffs on the US health care system. The authors argue that tariffs framed as tools of economic and geopolitical strategy carry serious unintended consequences for health care supply chains, hospital budgets, and medication affordability. The piece provides concrete data on US reliance on imported medical goods, noting that US hospitals spent $146.9 billion on imported medical supplies in 2023, and that approximately 69.0 percent of hospital medical devices are imported. The authors warn that the instability created by rapidly shifting tariff rates and targeted countries compounds these risks. The piece calls for a more nuanced approach to trade policy that takes health care dependencies into account, arguing that tariff policy must be wielded with nuance and an unwavering commitment to public well-being.

BACKGROUND: The Trump administration advanced sweeping tariffs framed as tools to address unfair trade practices, boost US manufacturing, reassert US economic dominance, and project geopolitical strength. Since their introduction, tariff rates and targeted countries shifted repeatedly.

KEY FINDINGS: US hospitals spent $146.9 billion on imported medical supplies in 2023. Approximately 69.0 percent of hospital medical devices are imported, making the health care sector acutely vulnerable to tariff disruptions.

IMPLICATIONS: Tariff policy must be wielded with nuance and an unwavering commitment to public well-being, with explicit attention to health care supply chain dependencies.