Trump’s tariffs: ‘The costs stack up’ ‘Manufacturers and suppliers can only absorb so much,’ says AAHomecare’s Tom Ryan

By Liz Beaulieu, Editor
Updated 9:34 AM CST, Fri January 24, 2025
YARMOUTH, Maine – HME manufacturers in January were watching closely as the rhetoric around potential tariffs on imports from certain countries heated up and they were taking steps to mitigate any risks, including stocking up on inventory.
Following his win in the November election, President Donald Trump singled out countries like China, Mexico and Canada for double-digit tariffs in a move that he believes will protect companies in the U.S. and encourage more companies to make products here.
“One key strategy is stocking up on inventory where feasible to cover short-term needs, which will help us manage any supply chain disruptions,” said Bill Shoop, CEO of React Health. “We are also working with our customers to encourage them to do the same, ensuring that both our operations and theirs are better positioned to weather any immediate price increases or delays. These actions are designed to help bridge any short-term gaps and maintain continuity of service.”
React Health’s supply chain is “quite diverse,” Shoop says, with the company sourcing raw materials from a variety of countries, including the U.S., as well as a dozen or so other locations globally. That diversity, he says, improves the company’s ability to “maintain flexibility, optimize costs and meet the varying demands of our valued customers,” he says.
It goes ‘well beyond just the tariffs’
While tariffs were top of mind post-election, HME manufacturers have consistently been dealing with volatility in their supply chains, including strikes or the threat of strikes at various seaports around the country and rising costs for shipping containers, including those moving through the Panama Canal.
“Since they built the new Canal and mega ships are coming through there, they’re diverting goods from the West Coast to the East Coast and those fees have been rising,” said Ken Spett, president and CEO of GF Health Products. “Trump’s after that, as well, so there might be some decreases (coming), but those are costs that we’ve been absorbing as a country well beyond the tariffs.”
GF manufactures about 75% of its products in the U.S., but it still imports 1,000 containers a year, mostly raw materials, electronics and “commodity bent metal,” Spett says. Frankly, the company is more concerned about reciprocal tariffs imposed by other countries, because it exports many of its products, he says.
Preparation is key
AAHomecare has hosted two conference calls with manufacturers about potential tariffs – the first drawing about 40 companies – and depending on how Trump executes the measures, the association is preparing to go on the record about exemptions for medical equipment and preparing a one-pager to circulate on the Hill with its concerns.
“Working with reimbursement rates that need a refresh and dealing with real market challenges even without tariffs – the costs stack up,” said Tom Ryan, president and CEO of AAHomecare. “These are costs that we, unlike other industries, can’t pass on to the consumer and the manufacturers and suppliers can only absorb so much. We’re preparing a good strong industry response if a formal proposal for tariffs is made.”
Shoop agreed that the potential for increased costs from tariffs is “a critical issue.”
But the sky isn’t falling
It’s not the industry’s first go-around with Trump or tariffs, so HME manufacturers say they do feel more prepared. They also know that many products, including certain medical equipment, will likely be exempted from tariffs, as they were during his first presidency.
“At this point, it's difficult to predict the exact impact of potential tariffs in 2025, as the details regarding which products or categories will be affected have not yet been released,” Shoop said. “Much of the uncertainty stems from the lack of clarity on whether specific goods, materials, or regions will be subject to tariffs. We're closely monitoring the situation and will adapt our strategies as more information becomes available.”
Learning from 2018, “smart” manufacturers in countries like China have also taken measures to work around tariffs, Spett says, including by building out capabilities in neighboring Vietman, which hasn’t been a focus of tariffs.
“For a lot of the medical products, if they put a huge tariff on China, they’ll move it to Vietnam and the pricing won’t be any different,” he said.
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