American Medical Manufacturers React to New China Tariffs
May 17, 2024

The White House has unveiled a series of tariffs on Chinese imports, in what the American Medical Manufacturers Association (AMMA) calls a “groundbreaking” move to bolster domestic manufacturing.

The Biden Administration is directing the office of the United States Trade Representative to increase tariffs by up to 50% on $18 billion of imports from China in the steel and aluminum, semiconductors, electric vehicles (EVs), batteries, battery components and parts and critical minerals, solar cells, ship-to-shore cranes, and medical products sectors.

“The White House understands that domestic manufacturers face an onslaught of underpriced, subpar Chinese imports. By sidelining high-quality American manufacturers, cheap Chinese imports threaten the safety of our healthcare workers and patients,” Eric Axel, executive director of AMMA, said in a release.

According to the White House, these tariffs are meant to counter China’s “unfair” trade practices such as “forced technology transfers and intellectual property theft.”

Among the new tariffs stands an increase on medical supplies, with PPE and surgical glove tariffs raising to 25% from between zero and 7.5%, and syringe tariffs raising from zero to 50%. The AMMA calls this a “pivotal moment in America’s quest for self-reliance and true resilience, particularly in personal protective equipment and critical medical products.”

“The White House’s bold proclamation is significant for everyone who favors fortifying domestic PPE and medical product manufacturing. AMMA anticipates the measures announced by President Biden having a transformative impact, invigorating the domestic manufacturing base and safeguarding our nation’s health and security,” said Axel.

 

Tariff adjustments on Chinese imports include:

  • Certain steel and aluminum products will increase from 0–7.5% to 25% in 2024.
  • Semiconductors will increase from 25% to 50% by 2025.
  • Electric vehicles will increase from 25% to 100% in 2024.
  • Lithium-ion EV batteries will increase from 7.5%% to 25% in 2024.
  • Lithium-ion non-EV batteries will increase from 7.5% to 25% in 2026.
  • Battery parts will increase from 7.5% to 25% in 2024.
  • Solar cells (whether or not assembled into modules) will increase from 25% to 50% in 2024.
  • Ship-to-shore cranes will increase from 0% to 25% in 2024.
  • Syringes and needles will increase from 0% to 50% in 2024.
  • Certain personal protective equipment (PPE), including certain respirators and face masks, will increase from 0–7.5% to 25% in 2024.
  • Tariffs on rubber medical and surgical gloves will increase from 7.5% to 25% in 2026.