Tariffs on medical technology threaten patients, innovation and global health

From the report

The economic principle popularized by economist Arthur Laffer is straightforward: when governments tax an activity more heavily, they often discourage it. That principle deserves particular attention when the products being taxed are essential to diagnosing diseases, treating patients and extending human life. President Donald Trump’s tariffs on medical technology risk raising healthcare costs, disrupting international supply chains and discouraging innovation-not only in the United States, but potentially across the global healthcare system.

Trump has frequently emphasized the importance of lowering prices for American consumers. Tax reductions, deregulation and greater transparency can help advance that objective. Yet tariffs on medical equipment and components work in the opposite direction. They increase the cost of producing, importing and maintaining technologies that hospitals depend on, potentially shifting the financial burden onto patients, insurers and taxpayers.

Modern medical technology is not manufactured within neat national boundaries. MRI scanners, advanced imaging systems, surgical robots, diagnostic instruments and life-support equipment often depend on components, specialized materials and engineering expertise sourced from several countries. A finished device assembled in one nation may rely on magnets, semiconductors, software and precision components manufactured elsewhere.