ARTICLE SUMMARY:
The Department of Commerce launches an investigation into device imports that could lead to more tariffs. Excerpted from Pathways’ Picks October 1: US Government Shutdown, Tariff Inquiry, AI Actions, and Global Picks.
More tariffs targeting the device industry could be on the table due to an investigation the federal government publicized last week into the national security implications of “imports of personal protective equipment, medical consumables, and medical equipment, including devices.” On September 25, the US Department of Commerce issued a request for comment from stakeholders on the capacity for domestic production and the vulnerabilities from foreign-produced devices in connection with the so-called Section 232 investigation, which officially launched earlier in the month. The Trump administration has increasingly employed Section 232 actions to enact sector-specific tariffs based on claimed national security risks. For instance, on the same day that the device investigation notice came out, the president announced a new 100% tariff rate on brand-name drugs (with various exemptions), five months after it published a similar 232 notice targeting the pharmaceutical industry. However, Scott Whitaker, president and CEO of AdvaMed, says he views the investigation as an opportunity for the industry to make the case why more tariffs won’t help. “We believe this process will reinforce the fact that U.S. medtech manufacturing is strong and lower tariffs will fuel more manufacturing and job growth in the U.S., which means greater access to lifesaving technologies and lower costs to American hospitals and patients,” he said.