OPINION:
Contrary to predictions, President Trump’s tariffs didn’t cause economic collapse overnight. There is even some evidence that they have had a salutary effect on the economy. For that reason, the administration deserves the benefit of the doubt on trade policy.
Except, it makes less sense to restrict imports of lifesaving medical equipment. In September, Commerce Secretary Howard Lutnick initiated a “national security” investigation of medical equipment imports that could lead to higher tariffs or an outright ban under what insiders refer to as Section 232.
Strengthening domestic manufacturing while reducing dependence on overseas supply chains is a core White House objective, but it comes at a cost: rising health care expenses and reduced accessibility. It also could hinder innovation.
Hospitals that run on slim margins worry about the unintended consequences. The Illinois Health and Hospital Association points out that Asian countries such as Malaysia and China dominate in manufacturing surgical gloves because that’s the part of the world where rubber trees grow best and related raw materials are plentiful.
America excels in high-end medical equipment. According to the International Trade Administration, it’s a $26 billion industry with 5,000 companies and 329,000 employees here at home. Most are small, thriving businesses. We export about 40% of the devices we produce to other nations.
This isn’t an industry like textiles or home appliances, where we’re falling behind foreign competitors. Of the world’s top 10 device makers, eight are headquartered in the United States.
The terms “devices” and “equipment” might refer to simple products such as surgical masks and gloves or a complex technological wonder such as a modern medical imaging machine, all regulated by the Food and Drug Administration. Reducing the availability of the advanced items, such as CT scanners, could make the difference between early detection of cancer and finding out there is a problem after it’s too late to treat.
A one-size-fits-all trade restriction curtailing access to medical devices manufactured entirely overseas would disrupt supply chains and drive health care costs skyward in a market where Obamacare has already made everything unaffordable.
Despite its deficiencies, American health care is the best in the world because we value invention. It would be foolish to ignore breakthroughs in other countries when they can help Americans.
Although support for the domestic production of medical devices is in line with an “America First” agenda for health care, the contemplated restrictions appear to be at odds with the interests of making America healthy again.
Unleash Prosperity commissioned a survey last year that found voters in battleground districts are overwhelmingly concerned with the costs of health insurance and medicine in general. The group recommends a “most favored patient” strategy to slash those costs with free market solutions.
It seems far more reasonable to boost domestic research and development with tax breaks than to limit consumer access to supplies. The group also recommends cracking down on the waste and fraud that funnel cash to unnecessary corporate middlemen.
The most intriguing proposal would outlaw surprise aftertreatment charges by requiring up-front disclosure so the public knows what to expect. “If the provider doesn’t show the price, the patient is exempt from paying the bill.” That change would be felt immediately.
Caution is needed on medical tariffs and restrictions because the more impactful reforms would come from focusing on the patient. Save the blunt tactics for areas where other countries have been using unfair tactics to win a dominant marketplace position.
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