News & Updates
Marken Regulatory Update: U.S. Trade Measures Impact Imports of Medical Supplies from China
In a significant policy update to the Section 301 of the Trade Act of 1974, President Biden’s administration has increased tariffs on $18 billion worth of imports from China. This move, aimed at countering unfair trade practices, affects a broad range of products, including PPEs and certain medical supplies.
Key Impacts on PPE and medical supplies:
- Syringes and Needles: increase to 50% in 2024
- Facemasks: increase to 25% in 2024
- Medical Gloves: increase 25% in 2026
The U.S. aims to reduce dependence on Chinese imports by encouraging U.S. manufacturers to increase the production of medical supplies and prevent technology transfer-related practices. The new tariffs will impact the cost of Chinese medical imports, making them less competitive compared to domestic products. The Biden administration believes these measures will lead to a more robust and self-sufficient U.S. medical supply chain, reducing reliance on imports and fostering fair competition.
Nevertheless, according to the World Bank, syringes imported to the U.S. from China represented about 14% of all syringe imports in 2023. As a result, importers and healthcare providers may face higher costs for certain supplies, potentially impacting patient care expenses.
Implementation Process:
After a period of notice and comment, the US Trade Representative will publish a list of products and their corresponding Harmonized Tariff Schedule (HTS) number and tariff rate increase. The tariff increases will deploy in stages starting in 2024 and continuing into 2026.
It is essential for importers of PPE and medical supplies to review their procurement and trade strategies thoroughly. This will enable them to effectively plan for future imports and avoid any potential disruption to their supply chain. Taking proactive steps now can help mitigate the impact of the tariff increases and ensure a smooth transition.
Please send your questions to Tradecompliance@marken.com.
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