Market Institute President Charles Sauer warns in a new Washington Examiner op-ed that proposals to impose Section 232 tariffs on medical devices would ultimately increase healthcare costs for Americans while doing little to strengthen an industry the United States already leads.
As the Trump administration considers whether to expand tariffs to medical devices, Sauer argues that policymakers should recognize the strength of the existing U.S. medical technology sector before adopting policies that risk higher prices and supply disruptions.
“The United States does not need to build the medical device industry. We already lead it,” writes Sauer. “Roughly 70% of medical technology sold in the U.S. is produced domestically, across 16,000 facilities employing 2.8 million Americans.”
While concerns about dependence on foreign adversaries are legitimate, Sauer contends that tariffs are the wrong solution. Instead, policymakers should focus on reforms that encourage domestic production through lower taxes, reduced regulation, and a stronger environment for innovation.
Sauer also notes that tariffs rarely remain isolated costs absorbed by manufacturers. Instead, they work their way through the supply chain and ultimately fall on American consumers.
“Tariff-driven cost increases eventually get passed downstream and paid for by consumers, not producers,” he writes.
The article highlights research showing that approximately 90 percent of the burden of recent tariffs has been borne by Americans. In the healthcare sector, those costs can have particularly serious consequences, increasing expenses for providers, insurers, and patients alike.
Rather than relying on protectionist measures, Sauer argues that the administration should pursue policies that strengthen American competitiveness without making healthcare more expensive.
“The free-market case for tariffs does not exist,” Sauer concludes, arguing that policymakers should prioritize innovation and economic growth over policies that risk raising costs and reducing access to critical medical technologies.
Read Charles Sauer’s full Washington Examiner op-ed for more.
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