Regulatory

AdvaMed, Swiss Medtech Make Appeal for Tariff-Free Trade

AdvaMed's leader joined the U.K.'s medtech trade group in making a similar plea two weeks ago.

By: Michael Barbella

Managing Editor

Photo: Rokas Tenys/Shutterstock.

Scott Whitaker continues to push back against potentially damaging tariffs.

Two weeks after joining the Association of British HealthTech Industries (ABHI) in calling for a reciprocal free trade policy between the two countries, AdvaMed’s president and CEO teamed up with Swiss Medtech to issue a similar appeal. In a joint statement, the two trade groups said the tariffs proposed by President Donald J. Trump pose a serious threat to U.S. and Swiss medical technology.

“The medical technology industry in both the U.S. and in Switzerland is one of the most innovative and critical sectors for transatlantic trade. Our industry produces innovative and essential products that save and improve lives and enable the delivery of quality health care in both countries,” the statement reads. “Recent trade tensions and the threat of tariffs are posing a serious threat to our respective health technology industries and to the health systems, health care professionals and patients who depend on us to ensure timely access to treatment.”

The groups issued their joint statement as the United States softens its stance on tariffs (for now): The United Kingdom has agreed to lower the average tariff on American goods from 5.1% to 1.8% in return for the United States cutting U.K. automobile levies by 17.5% and eliminating the 25% tariffs on U.K. steel and aluminum. In addition, America and China have agreed to a 90-day pause on the highest tariffs from both countries, with the United States lowering its levy on most imported Chinese goods to a combined 30% (remarkably lower than the original 145% proposed last month).

The lower levies, however, are still likely to inflict considerable financial pain on the medtech industry in both Switzerland and the United States. In a repeat of its joint statement with ABHI, the AdvaMed-Swiss Medtech public commentary warns that Trump’s tariffs will raise costs for taxpayer-funded healthcare programs and endanger product/procedure reimbursements in both countries.

Related: Could Medtech Tariff Exemptions Be on the Way?

“…unlike most products that are paid for directly by consumers, our largest payers are the governments themselves through their health care systems. Any national revenue raised through tariffs could be offset by higher costs to the taxpayers who fund those programs,” the two groups noted. “Furthermore, medtech companies often operate in a generally fixed-reimbursement environment through multi-year contracts established with the thousands of hospitals and clinics across the United States and Switzerland.”

In their joint statement, AdvaMed and Swiss Medtech also claimed that tariffs have already started to affect supply chain procurement timelines, particularly among surgical kit, diagnostic components and imaging device providers. “This is concerning news, yet there is still time to ensure it does not devolve into a crisis.”

To avoid further tangling the medtech supply chain, Swiss and U.S. lawmakers should agree to a zero-for-zero tariff policy on medical products, and forge a regulatory agreement for FDA approvals and clearances.

“Zero for zero tariffs on trade in medical technology between the U.S. and Switzerland would allow our industry to continue to allocate its resources to the greatest benefit for patients and the health care systems, ensuring the quality, innovation and availability of our industry’s wide range of lifesaving and life-improving products,” the statement reads. Both countries should also “advance the … ongoing development of a world-class regulatory system for medical technology that leverages best practices from trusted regulators where Switzerland takes into account regulatory approvals and clearance from the FDA, including PMA and 510(k). Such facilitated conformity assessment procedures would expand access to innovation for patients, enable Switzerland to continue to provide the best in clinical care, and ensure it continues to be a global leader for medical technology research and innovation.”

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