It doesn’t take a PhD in economics to understand that tariffs increase prices. A recent YouGov poll found that 73% of Americans think that tariffs imposed by President Trump have increased prices for the things they buy.
That’s why the greatest threat to U.S. national security and health care affordability doesn’t come from imports, but from tariffs.
A survey of health care industry experts found broad agreement that new tariffs would disrupt supply chains and increase hospital and health system costs, resulting in reductions in equipment purchases and upgrades. The consulting firm PwC projects that tariffs affecting the pharmaceutical, life science, and medical device industries could cost as much as $63 billion a year.
So why is the Trump Administration debating whether to impose new tariffs on medical devices and personal protective equipment? The tariffs are being considered under Section 232 of the Trade Expansion Act of 1962, an antiquated law created during the Cold War that allows the President to impose tariffs on imports that threaten to impair the national security of the United States. President Trump has previously used his Section 232 authority to impose tariffs on imports ranging from steel and aluminum to furniture and canned beer.
Increased costs would inevitably be passed along to patients either directly or through increased health insurance premiums. Tariff costs would also hit U.S. taxpayers by driving up costs to the federal government, which spent more than $1.7 trillion on health care in fiscal year 2025.
Even the Trump Administration has reluctantly conceded that tariffs increase prices. A recent executive order slashed tariffs on products like coffee, bananas, and fertilizer to strengthen the U.S. economy and our national security.
Americans are worried about high prices, and they are especially worried about the rising cost of health care. A survey released by Families USA found that 88% of Americans believe that health care costs too much. That’s why the Trump Administration should not use the Section 232 investigation as an excuse to impose new tariffs. But even more can be done to promote U.S. health care security.
Consider the fact that imports from the European Union (EU) currently face 15% “reciprocal” import duties. The EU is, by far, the largest supplier of imported medical equipment and supplies. The Trump Administration should take a page from its recent cuts in food-related tariffs and terminate existing tariffs imposed by the Administration that affect medical goods.
It should also remove tariffs on inputs needed to produce medical supplies in the United States. Ending tariffs on raw materials like steel and aluminum that are needed by U.S. manufacturers of medical supplies would boost U.S. production of these items.
A more radical approach to promote affordable health care would be to utilize Section 232 for the first time in history to reduce statutory U.S. tariffs. In the past, Section 232 has only been used to restrict imports. But the law allows the president to “adjust” imports. President Trump has not been shy about testing the limits of U.S. trade law. He should take this opportunity to adjust tariffs downward.
There is recent precedent for such tariff cuts. During the COVID-19 pandemic, the Office of the U.S. Trade Representative exempted several medical products from new tariffs, including face masks and thermometers.
Congress also responded to the pandemic by passing the CARES Act, which directed the National Academies of Sciences, Engineering, and Medicine to report on the security of the U.S. medical product supply chain. The resulting report concluded that imports can contribute to “lower prices, higher quality, wider variety, and more innovation.”
The report noted that the ability to source goods from multiple global suppliers could protect Americans in the event of a domestic disaster. Indeed, soon after the report was released, Hurricane Helene disrupted the production of IV supplies in North Carolina, and the federal government responded by authorizing more imports.
American patients and health care providers benefit when barriers to affordable medical imports are removed. Instead of erecting new tariff barriers that would increase the cost of medical supplies, the federal government should remove tariffs that threaten to impair the health care security of the United States.
Bryan Riley is Director of the National Taxpayers Union’s Free Trade Initiative.
