The Trump government has launched investigations into the imports of robotics, industrial machinery and medical devices, a move that could pave the way for new duties and increase the costs for consumers, hospitals and manufacturers, CNBC notes.
The Ministry of Commerce announced on Wednesday that investigations, which began on September 2 in accordance with “Article 232” of the Law on Extension of Trade, would evaluate whether these imports threaten US national security, according to federal records.
Which products concern
Recent research expands the list of species that may undergo higher duties to include personal protection equipment, such as surgical masks, N95 respiles, gloves and other medical consumables, including syringes, needles and prescription drugs.
They also extend to imported medical equipment, such as wheelchairs, hospital beds and diagnostic and therapeutic devices, such as pacemakers, insulin pumps and heart valves.
Investigations could be used as an excuse for the imposition of new sectoral duties aimed at enhancing domestic production of goods considered critical to national security.
The ministry is calling on companies to make comments on the intended demand for these products and whether domestic production can meet local demand, as well as the role of foreign supply chains.
Companies are also called upon to describe the impact of foreign subsidies and what the government has described as “predatory commercial practices”.
The Trump government has already cited Article 232 to impose duties on cars and spare parts, copper, steel and aluminum.
Investigations are also under way on imports of medicinal products, semiconductor and chip components, such as silicon discs, chip construction equipment and related products, reflecting Washingnuts’ concerns about the dependence of overseas supply chains.
Any new duties resulting from sectoral surveys will be added to the duties imposed by US President Donald Trump on specific countries, although the European Union and Japan have entered into agreements that could protect them from additional duties.
The US is largely dependent on Mexico and China for machinery, with imports from the two countries representing more than 18% and 17% of total US machinery in 2023, according to data from the US Committee on International Trade.
The automotive industry may be one of the sectors that will be more affected by the latest potential duties, as it represented the highest demand for industrial robots -13,747 facilities last year, according to the International Robotics Federation. Most of these robots were imported, with few manufacturers producing in the US, the federation said.
Hospitals and patients
Possible duties on medical devices and protective equipment could increase the costs for hospitals and patients, reducing access to critical equipment and care, experts warned.
“MedTTech supply chain companies are already expressing concerns about the supply chain and we cannot withstand the increase in healthcare costs for patients or the healthcare system,” said Scott Whitaker, Managing Director of Advamed, and their commercial manager. “The reality is that any increase in costs will greatly burden the health programs funded by taxpayers, such as Medicare and Medicaid.
Hospital associations have also sounded the alarm this year, warning that the highest duties could hurt the quality of care.
Rick Pollack, Managing Director of the American Hospital Association, said in April that “disorders in the availability of these critical devices – many of which come from abroad – may disrupt patients’ care.”
Source: Skai
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