The Hidden Costs of Tariffs on Medical Technology: A Threat too American Health and Innovation
For decades, the United States has been a global leader in medical innovation, driving breakthroughs that improve lives and strengthen our nation’s health security. However, a growing trend towards protectionist trade policies, specifically the imposition of tariffs on medical devices, risks undermining this progress and creating significant barriers to affordable healthcare for all americans. As President of the Consumer Technology association (CTA), representing over 1300 consumer technology companies, I’ve witnessed firsthand the transformative power of health technology and the potential damage thes tariffs represent.
This isn’t simply an economic argument; it’s a public health imperative.
The rising Cost of Care: Tariffs as a Barrier to Access
The current discussion around tariffs often overlooks a critical reality: medical devices are essential healthcare tools. Layering new tariffs onto existing duties on materials like steel and aluminum, alongside country-specific tariffs, directly translates to higher costs for vital equipment. We’re talking about diagnostic imaging machines, wearable health monitors, hearing aids – technologies that empower individuals to proactively manage their health and allow healthcare providers to deliver the best possible care.
For low- and middle-income households already grappling with rising healthcare expenses,these increased costs are particularly devastating. making these tools less accessible doesn’t just impact individual well-being; it weakens the overall health of our nation. A healthier population is a more productive and secure population, and affordability is a cornerstone of that equation.
Stifling Innovation at a Critical Juncture
Beyond immediate costs, tariffs pose a serious threat to the very engine of medical innovation. The rapid advancements we’re seeing in healthcare – particularly in areas like artificial intelligence - are built on complex global supply chains and collaborative partnerships. AI-powered diagnostics, remote patient monitoring, and personalized medicine aren’t developed in isolation; they require seamless integration of components and expertise from around the world.
Introducing uncertainty through new tariffs disrupts these vital connections.American businesses, especially dynamic small businesses and startups, are forced to divert resources away from crucial research and growth, and towards navigating complex regulations and legal compliance. this slows down the pace of innovation, jeopardizing American leadership in the rapidly expanding health tech industry. It’s a short-sighted approach that ultimately harms our long-term competitiveness and the health of our citizens.
The Growth of Digital Health: A Trend We Must Support
The demand for connected health solutions is demonstrably growing. In 2024 alone, over 16 million connected health monitoring devices were shipped in the U.S., and the digital health sector experienced double-digit growth. These technologies are empowering individuals – particularly younger and lower-income Americans – to take control of their health and well-being. This trend is not a fleeting fad; it’s a fundamental shift in how healthcare is delivered and experienced.
We should be fostering this innovation, not hindering it with artificial barriers.Policies should be designed to accelerate the development and adoption of these life-changing technologies, not to make them more expensive and less accessible.
A Strategic Approach to Trade: Prioritizing Health and Security
Our trade policy must be strategically aligned with our national interests, focusing on genuine threats to national security while recognizing the vital role of medical technology in maintaining a healthy and resilient population. The vast majority of medical device imports come from our allies and trusted trade partners in Europe and North America. These aren’t adversarial relationships; they are collaborative partnerships that strengthen our healthcare system.
Consider this: American manufacturers rely on access to over two million regulated technologies that they cannot produce domestically. Imports fill critical gaps, ensuring that healthcare providers have the tools they need to deliver the best possible care. Targeting these essential imports with tariffs is counterproductive and ultimately weakens our healthcare infrastructure.
A Path Forward: Collaboration, Affordability, and Innovation
The solution is clear: we must keep consumer medical devices free from new tariffs and actively strengthen our partnerships with allies. This will not only foster growth in the health tech sector and create jobs for Americans, but also ensure that everyone has access to the tools they need to live longer, healthier lives.
Access to affordable health technology isn’t just an economic issue; it’s a fundamental right.If we are serious about making America healthy again, we must prioritize policies that support innovation, affordability, and access to the medical technologies that are transforming healthcare.
About Kinsey Fabrizio
Kinsey Fabrizio is President of the Consumer Technology Association (CTA), representing more than 1300 consumer technology companies and owning and producing CES® – the most influential
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