Trump tariff threat looms over robotics and medical devices

The Trump administration has launched nationwide safety investigations into imports of robotics, industrial equipment and medical units, a transfer that would pave the best way for contemporary tariffs and lift prices for customers, hospitals and producers.

The Division of Commerce mentioned Wednesday that the probes, opened Sept. 2 underneath the “Part 232” of the Commerce Enlargement Act, will assess whether or not such imports threaten U.S. nationwide safety, in response to Federal Register filings.

The most recent probes develop the listing of things that could possibly be uncovered to larger tariffs to incorporate private protecting gear akin to surgical masks, N95 respirators, gloves and different medical consumables, together with syringes, needles and prescribed drugs.

Additionally they prolong to imported medical gear akin to wheelchairs, hospital beds and diagnostic and remedy units like pacemakers, insulin pumps and coronary heart valves.

The probes could possibly be used as justification for contemporary sectoral tariffs geared toward boosting home manufacturing of products deemed vital to nationwide safety.

The division is looking for feedback from firms on their projected demand for these merchandise and whether or not home manufacturing can meet native demand and the function of international provide chains.

Companies are additionally invited to stipulate the impression of international subsidies and what the administration described as “predatory commerce practices.”

The Trump administration has beforehand invoked Part 232 to impose levies on vehicles and elements, copper, metal and aluminum.

Investigations into imports of prescription drugs, semiconductors and chip parts akin to silicon wafers, chipmaking gear and associated downstream merchandise are additionally ongoing, reflecting Washington’s considerations over reliance on abroad provide chains.

Any new duties ensuing from the sector-specific probes can be stacked on high of U.S. President Doanld Trump’s country-specific tariffs, although the European Union and Japan have reached agreements that would defend them from further levies.

The U.S. relies upon closely on Mexico and China for equipment, with imports from the 2 nations accounting for greater than 18% and 17% of complete U.S. equipment purchases in 2023, in response to knowledge from the U.S. Worldwide Commerce Fee.

The auto trade could possibly be among the many hardest hit by the newest potential tariffs, because it accounted for the most important demand for industrial robots — 13,747 installations final yr, in response to the Worldwide Federation of Robotics. Most of these robots had been imported, with few producers producing within the U.S., the group mentioned.

The potential levies on medical units and protecting gear might improve prices for hospitals and sufferers, decreasing entry to vital gear and care, specialists have warned.

“MedTech provide chain leaders are already reporting provide chain considerations, and we can not afford to drive up the price of well being take care of sufferers, or on the well being care system,” mentioned Scott Whitaker, CEO of AdvaMed, the commerce group that represents medical expertise and system makers. “The truth is, any elevated prices will probably be largely borne by taxpayer-funded well being applications like Medicare, Medicaid and the [Veterans Health Administration].”

Hospital commerce teams have additionally been sounding the alarm this yr, warning that larger tariffs might damage the standard of care.

Rick Pollack, the CEO of the American Hospital Affiliation, mentioned in April that “disruptions within the availability of those vital units — a lot of that are sourced internationally — have the potential to disrupt affected person care.”

— CNBC’s Bertha Coombs contributed to this report.