AdvaMed’s president and CEO Scott Whitaker has called for a “zero for zero” reciprocal tariff model for medical devices, as the trade association warns of the risks facing the American medtech industry amid international trade pressures.
Whitaker made the comments during a US Senate Committee on Finance hearing focused on the impact of tariffs on supply chains in the country. Though generally supporting US President Donald Trump’s moves to “fix longstanding and unfair trade imbalances”, AdvaMed maintained its long-adopted position of seeking tariff relief for medical products.
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Trump’s ongoing trade war has brought instability to many industries, with healthcare being no exception. His sweeping tariffs have disrupted medical device supply chains globally. Levies placed on China – although currently paused – have particularly impaired procurement channels for device components made in the country. Medtech companies are already bracing for a difficult 2025 due to financial headwinds. Philips forecasts a $350m hit in the year ahead while GE Healthcare is predicting a setback of $500m.
Though welcoming the reset on China’s trade relationship, Whitaker said: “The best way for the medtech industry to continue delivering on its commitment to patients both here at home and around the world rests with maximum flexibility for our industry.”
Representing more than 600 medical technology companies, AdvaMed is calling for medical products to be treated with a “zero for zero” model in country-to-country negotiations, effectively making them exempt from tariffs.
In his speech, Whitaker pointed to the highly regulated nature of the medtech industry and the impact medical supply chains have on lives. He then alluded to the reimbursement landscape, explaining that medical technologies are typically purchased by hospitals on multi-year contracts, making cost spikes in the short term difficult to adjust to.
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By GlobalDataThe AdvaMed chief moved on to a concern shared by many experts, that tariffs will likely drive up the costs of medical products.
“Any tariff policy that would force increased costs onto these federally funded programs [Medicare, Medicaid, and the Veterans Health Administration] would be counterproductive,” Whitaker explained.
Finally, he highlighted the complex nature of medical product supply chains. A device assembled in the US, such as a diagnostic scanner, might have parts constructed from more than 20 countries around the world. More than 90% of semiconductors – computing chips used in over half of all medical devices – are made in Taiwan, for example.
“Medtech supply chain leaders across the industry reported that procurement timelines have already slipped, especially for surgical kits, diagnostic components, and imaging devices,” Whitaker stated.
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