The U.S. government has launched a wide-ranging probe into the medtech industry and its international supply chain as a step before potentially imposing new and higher tariffs on devicemakers.
Known as Section 232 investigations, for the eponymous provision under the Trade Expansion Act, they aim to explore the impacts of certain imports on national security. Since taking office in January, the Trump administration has launched Section 232 inquiries into cross-border shipments of materials such as aluminum, copper and lumber, as well as automobiles, semiconductors and pharmaceuticals.
In a notice published this week (PDF) in the Federal Register, the Department of Commerce disclosed that it launched its investigation Sept. 2, spanning the makers of durable medical devices as well as consumable supplies and personal protective equipment—everything from MRI machines, surgical robots, pacemaker implants and insulin pumps to syringes, masks, gloves and gowns.
The department’s Bureau of Industry and Security said it plans to seek information, such as, the projected demand for PPE versus the country’s capacity to produce it domestically, and the risks of supply chains potentially falling under foreign control. It will be collecting public comments on the issue through Oct. 17.
Under the law, the Commerce Department is required to submit a report on its findings and recommendations to President Donald Trump within 270 days, with any subsequent actions potentially taking place next summer. The process allows for public hearings, but it is currently unknown whether they will be scheduled.
National medtech association AdvaMed—which has been lobbying for most of this year to exempt medical equipment from Trump’s across-the-board tariff policies—said the investigation offers another opportunity for it to press its case.
“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,” AdvaMed CEO Scott Whitaker said in a statement.
“Seventy percent of the medical products that American hospitals and patients rely on are made in America across thousands of manufacturing facilities in all 50 states,” Whitaker said, adding that medtech job growth has outpaced the average pace of the broader manufacturing sector in recent years.
The association estimates that the industry is responsible for nearly 3 million U.S. jobs, both directly and indirectly, and that medtech’s $80 billion in annual exports surpasses cars, computer chips and natural gas.
Approximately 30% of the market, which is imported, largely comes from Canada, Mexico and Europe—some of the first targets of Trump’s tariffs, alongside China. However the size and deadlines of the levies have varied throughout this year.
The stock prices of many U.S. and European medtech manufacturers took a dip following the Section 232 announcement, according to reports from Reuters, including companies such as Abbott, BD, GE HealthCare, Intuitive, Medtronic and Stryker as well as Philips, Siemens Healthineers and Smith+Nephew.