Medtech Caught in the Crossfire of Trump's Trade War (2025)

Medtech Caught in the Crossfire of Trump's Trade War (2)

Pedersen's POV is a weekly opinion column that addresses various aspects of the medtech industry, including the good, the bad, and the controversial.

It was refreshing to finally see a statement from AdvaMed's Scott Whitaker last week regarding President Trump's latest tariff policy, but it still feels, to me, like the statement lacked the conviction that I know the organization's president and CEO is capable of.

Think back to the 2.3% tax on U.S. medical device revenue that was originally part of the Affordable Care Act. AdvaMed, under Whitaker's leadership, was vehemently opposed to the tax from the get-go and didn't pull any punches when talking to those in power about the negative impact of the tax on medical device innovation and jobs. For years while the tax was temporarily suspended, AdvaMed fought with the tenacity of a desert cactus until the medical device tax was finally repealed for good.

In last week's statement on Trump's most recent tariff measures, Whitaker expressed "disappointment" in the broad tariffs that will negatively impact American medical technology and innovation. But his words lack the aggressiveness that the topic merits.

Whitaker's statement was clear in that broad-based tariffs, if implemented as proposed, would negatively impact innovation, cost jobs, and increase overall costs to the healthcare system. He even mentioned that the tariffs would essentially act as an excise tax on the industry. Yet, he still appears to be holding onto a shred of hope that the Trump administration can be reasoned with.

Related:Edwards' Manufacturing Base Helps Buffer Tariff Impact

“While disappointed in this initial announcement, we look forward to continuing our conversations with the White House to help them understand the important role the medtech industry plays in our health care ecosystem, the value it provides to patients, and the importance of the industry to continued U.S. economic growth. The medtech industry should be exempted from these tariffs," Whitaker said.

I get the delicate position Whitaker and other industry advocates must find themselves in, particularly with the current administration. Sometimes a balanced strategy of diplomatic engagement and persistent advocacy is best.

However, the urgency of this situation cannot be denied and therefore calls for a more aggressive approach. The tariffs pose immediate risks to innovation, supply chains, and patient care. A bolder approach would generate more public support, increase pressure on the administration, and rally the entire medical device industry more effectively, just as it did during the years that AdvaMed led the industry in vocal opposition of the medical device tax.

What might a more aggressive approach against tariffs impacting medtech look like? AdvaMed could commission and widely publicize studies detailing the potential job losses and damage to R&D programs across the medical device industry. Perhaps the organization could work with patient advocacy groups to highlight how tariffs could impact patient care and healthcare costs. And, just as it did when fighting for the permanent repeal of the medical device tax, AdvaMed could and should intensify efforts to lobby Congress, potentially pushing for legislation to protect the medical device industry from tariffs.

Related:Thermo Fisher Lowers 2025 Guidance as Trump Tariffs, Research Cuts Take Toll

I respect AdvaMed's attempt at a measured and diplomatic approach to the tariff issue. That said, a more forceful stance, perhaps one that maintains open dialogue with the administration while simultaneously increasing public advocacy and applying more pressure through a variety of channels, is paramount.

Forget diplomacy. It’s time to speak truth to power and fight these tariffs as though they’re a medical device excise tax. That's what AdvaMed's members deserve, and it's most certainly what American patients deserve.

Medtech Caught in the Crossfire of Trump's Trade War (2025)
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