Trump pauses tariffs

WASHINGTON - President Donald Trump on Feb. 3 suspended his plans to implement 25% tariffs on products from Mexico and Canada, agreeing to a one-month pause in exchange for concessions on border security and crime enforcement.   

The DME industry is closely monitoring the situation to see what, if any, exclusions might be included for medical equipment and products, according to a bulletin from VGM Government Relations. 

An increase in tariffs, VGM says, could lead to several key impacts:   

• Increased wholesale costs: The cost of importing medical equipment from overseas will rise, impacting the overall expenses for DMEPOS providers. This increase in costs is likely to be passed on to consumers, leading to higher prices for medical devices and supplies. For instance, tariffs on Chinese-made medical devices could increase prices by up to 25%, affecting a wide range of products from syringes to diagnostic equipment.   
      

• Access to medical equipment: Higher costs may limit the availability of essential medical devices, making it harder for providers to maintain adequate supplies. This could particularly impact smaller providers who may struggle to absorb the increased costs. The tariffs could also lead to shortages of critical medical supplies, as providers may reduce their orders to manage costs.   
      

• Timely delivery: The tariffs could exacerbate delays in the supply chain, similar to the disruptions experienced during the supply chain shortage in 2023. The previous shipping crisis had a significant impact on the access and cost of DMEPOS, causing delays and increased expenses. Similar challenges are anticipated with the new tariffs, as increased costs and potential retaliatory measures from affected countries could further disrupt the supply chain.  

VGM says it is monitoring developments. 

• Related: Trump’s tariffs: ‘The costs stack up.