CHASKA (MN) September 26, 2018 — The trade rift between China and the U.S. continues to escalate with the Trump Administration imposing 10% tariffs on $200 billion worth of imports. At the same time, China responded with 5% to 10% tariffs on $60 billion of U.S. goods, including $3.5 billion in medtech-related trade. Added to tariffs levied this past summer, about $4.75 billion in U.S. medical devices are now impacted from retaliatory Chinese tariffs.
The latest trade talks between both countries have created uncertainty across many industries, particularly in the medical device sector. A couple of looming issues are if we’ll see more heightened retaliatory measures or if we’ll see a spill-over effect to other important trading partners across the globe.
“These latest actions will have some sort of impact on all of us, both small and large medical device companies,” remarked Todd Fagley, CEO of MedSource Labs. “But, what’s most concerning is that these costs will ultimately be passed on to consumers — patients who rely on our medical products in hospitals or emergency rooms each and every day,” added Fagley.
“We operate in a tightly regulated environment and we’re always pursuing new investments to drive down health care costs and improve patient outcomes, yet these tariffs only perpetuate uncertainty across our industry. As a well-diversified medical device company, we remain optimistic that we have the capacity to be nimble and operate in a rapidly evolving landscape while trying to keep prices down, but not all companies have that flexibility. Moreover, there is concern that these trade wars could escalate, which could have a real impact on the broader economy. That issue remains to be seen.”
MedSource Labs is a leading medical product developer and supplier specializing in high-quality products and innovative medical product development. By delivering top-quality products and solutions at cost-effective prices, MedSource Labs has been helping improve patient outcomes since 2002. The privately held company, headquartered in Chaska, Minn., serves health care professionals including emergency medical providers, hospitals and surgical centers, veterinarian and dental providers, and government agencies. Find out more about MedSource Labs at https://medsourcelabs.com.