Tariffs update: Manufacturers hold steady

YARMOUTH, Maine – HME manufacturers say they are committed to trying to avoid price increases as they keep a watchful eye on trade negotiations and work through any changes in tariffs. 

Manufacturers contacted by HME News in April and May, including React Health, said they have largely avoided increasing their prices so far, due in part to their ability to confirm tariff exemptions for their products. 

“Increasing prices, adding surcharges and nickel and diming customers on a regular basis because we can is not who we are,” said Bill Shoop, CEO of React Health, which has a supply chain that extends outside of the U.S. into many countries, including China. “We understand the challenges of reimbursement and the inability of our customers to pass through price increases. We have not raised any customer’s price due to tariffs at this time and with current exemptions wouldn’t see the need.” 

As of May, the U.S. had agreed to a 90-day pause in escalating tariffs with China and a reduction in the 145% tariff on select imported goods from China to 30%. A base 10% tariff on goods imported from other countries is still in effect. 

The situation is evolving 

At Rhythm Healthcare, “our supply chain has not been materially impacted by recent or proposed tariff changes (and) our pricing, sourcing and go-to-market strategies remain unchanged,” said Mitch Yoel, COO. 

“We are committed to supporting our provider partners, many of whom operate within fixed reimbursement structures, and ensuring they continue to receive the same reliable service and value from Rhythm they’ve come to expect,” he said. “We will continue to monitor developments closely and remain proactive in mitigating potential risks.”  

In a nod to the continued uncertainty around tariffs, Rick Spiegel, vice president of corporate business development for MK Battery, said: “We’ve been able to limit any significant tariff impact thus far, but obviously, this is an evolving area that could impact pricing.” 

MK Battery, which manufactures most of its batteries in the U.S. and certain AGM models in Vietnam, said it is working with AAHomecare and other industry groups on advocacy initiatives to advance the interests of the industry. 

“We fully understand the implications that tariffs can have on the affordable access to medical equipment and will work diligently to minimize the impact,” Spiegel said. 

Summer could be breaking point 

For GF Health Products, which manufactures many products in the United States but does import certain bent-metal products and components, it’s “a waiting game” to see how the tariffs affect pricing, but there could be an adjustment this summer, said Cynthia Counts, vice president and chief product officer. 

“We didn’t want to jump the gun when tariffs were first announced,” she said. “We’re trying to analyze and be strategic. We’re going to play this out as long as we can without passing along any costs as we know our customers are concerned on the impact.” 

Simultaneously, Graham Field has accelerated its “Made in USA” strategy with a goal of increasing its capacity to self-manufacture, including in its healthcare seating products. 

“We’ve had to invest over the years in capital equipment, but it’s paying off now,” Counts said. “Investments such as fiber optic laser tube cutting and CNC textile cutting systems and robotic welding. We source our steel domestically and have our own paint line in the bed plant. This gives us control over quality and means we’re not confined to (import cost increases) like we’re seeing now from others.”