Opinion: What’s the Right Level for Tariffs on Healthcare Products? Zero

As the Trump Administration considers tariff-based solutions to the country’s economic and political concerns, one fact is clear:  there should be no tariffs on healthcare products or their inputs.  Tariffs of any level on pharmaceuticals, medical devices, and their essential components serve as an unnecessary barrier to affordable healthcare for American citizens. Given the life-saving nature of these products and the urgent need to reduce healthcare expenses, the U.S. should adopt a "zero-tariff" approach for healthcare-related imports.

A Moral and Economic Imperative

Every year, millions of Americans rely on life-saving medications, medical devices, and treatments to maintain their health. From insulin for diabetic patients to pacemakers for victims of heart failure, the need for affordable and accessible healthcare is not just an economic issue but a moral one.

Tariffs on healthcare products currently range from a few percentage points to as high as 12 percent.  The Trump Administration’s proposals to impose a minimum of 10 percent tariffs on all trading partners will only add to the financial strain on American families, particularly those who need ongoing treatments or specialized devices.  A 2019 report by the U.S. International Trade Commission (USITC) analyzed the impact of tariffs on medical products and found that even small tariff increases can lead to price hikes in the U.S. healthcare sector.

Why Zero Tariffs on Healthcare Products Won’t Hurt U.S. Competitiveness

The good news is that this will not be a unilateral tariff reduction on the part of the United States.  Most major healthcare markets around the world (including Australia, Canada, European Union, and Japan) have already aligned with the World Trade Organization’s  "Zero-for-Zero" initiative, adopted in 1995 with the aim to eliminate tariffs on pharmaceutical products and medical devices among its members. This initiative is grounded in the idea that healthcare products should flow freely across borders to promote public health without the hindrance of economic barriers.  Countries that have already implemented zero tariffs on medical goods have seen positive results, including lower healthcare expenditures and improved access to innovative treatments.

Addressing National Interests

Opponents of eliminating tariffs often argue that such policies would slow down the shift toward domestic manufacturing or threaten national security. However, these concerns can be addressed by strategically supporting U.S.-based companies involved in the production of medical goods through incentives and research grants, rather than relying on tariffs as a protective measure. Furthermore, tariffs on healthcare products often disproportionately affect vulnerable populations, including low-income Americans, the elderly, and those with chronic conditions.

Indeed, a report by the Congressional Research Service in 2020 emphasized that pharmaceutical and medical device manufacturing is complicated, involving highly specialized processes with strict regulatory requirements. The transition to domestic production can take years or even decades to build the necessary infrastructure, supply chains, and skilled workforces.  During this transition period, high tariffs will only deepen the burden on American patients.

Conclusion

American patients have the best healthcare system in the world, but it is not cheap.  As the Trump administration works to increase affordability and create incentives for home-grown healthcare solutions, tariffs must not add healthcare costs.  By eliminating tariffs on life-saving products, the United States can take an important step toward reducing healthcare spending, increasing access to essential treatments, and improving the quality of life for all Americans.