Tariffs are often sold as a tax on foreign countries, but recent tariffs have fallen almost entirely on American households. It is already affecting the price of the tools and supplies hospitals rely on. Whether applied to the steel and aluminum used to make hospital equipment or on the equipment itself, tariffs increase the cost of healthcare. Despite these costs, the Trump administration is now considering additional tariffs on pharmaceuticals and personal protective equipment (PPE) regardless of origin under the rationale of national security.
The argument is that relying on foreign countries production threatens U.S. security. In reality, the earlier PPE tariffs demonstrated the opposite: tariffs themselves restrict access to critical healthcare supplies, even when they are needed most.
Medical equipment is currently subject to a range of cost-increasing tariffs. Essential tools such as facemasks, medical gloves, syringes, and needles made in China face a minimum 25 percent import duty. Tariffs on the steel and aluminum used to produce medical equipment are up to 50 percent, with an additional 10 percent tariff layered on top—except for a temporary carveout for pharmaceuticals and pharmaceutical ingredients—expected to last through most of July 2026.
When the cost of a syringe or MRI machine rises by 25 percent at the border, that increase does not disappear. It is passed through distributors and providers, ultimately reaching insurers which raise premiums to cover higher costs.
Tariffs can also undermine hospitals’ readiness to provide care. The tariffs imposed on Chinese PPE offer a clear example. When the first Trump administration imposed tariffs on PPE in September 2019, hospitals were forced to choose between paying more for masks or drawing down the existing inventories before an exemption could be made. Many turned to their stockpiles while searching for a cheaper source. As a result, hospitals entered the COVID-19 pandemic with depleted essential supplies. At the same time other countries were hording PPE, U.S. tariffs were blocking those supplies.
Steel and aluminum tariffs further increase healthcare costs. Aluminum’s strength and light weight make it a primary material in producing wheelchairs, while steel is used in everything from scalpels and clamps to imaging equipment and building hospital facilities. These higher input costs are ultimately borne by patients.
Demand for healthcare services does not fall when prices rise. Patients can’t skip necessary treatment the way they can skip a film if movie theatre prices rise. At the same time, shifting supply chains or expanding domestic production takes years. The result is a combination of higher prices and increased risk of shortages.
Tariff passthrough also undermines patients’ financial security. Nearly half of Americans already consider it difficult to pay for healthcare. More than a third would struggle to pay for quality care if needed, and a quarter report difficulty affording prescription drugs. Adding more costs through even more tariffs will make care less affordable, particularly for those who are already struggling.
Instead of adding new costs to the healthcare system, patients would be better served by removing the existing ones. Eliminating tariffs is straightforward way to lower healthcare costs for patients.
Justin Leventhal is a Senior Policy Analyst for the American Consumer Institute, a nonprofit education and research organization that advocates for consumers through evidence-based analysis and data. Follow Justin on X @JustinLeventhal.