July 12, 2018
How a Trade War with China Will Impact U.S. Health Care Costs
The Trump Administration recently announced new tariffs on roughly $250 billion of Chinese imports. AAF’s Director of Immigration and Trade Policy, Jacqueline Varas, and Deputy Director of Health Care Policy, Tara O’Neill Hayes, have analyzed the impact of the new tariffs on medical equipment prices in the United States.
Key findings include:
- The tariffs will impact approximately $1.8 billion of medical imports each year;
- The prices for medical equipment will increase by roughly $400 million, assuming import levels stay the same; and
- The uninsured and those with substantial out-of-pocket liabilities will be the hardest hit by these new tariffs, as providers will likely recoup the increased cost of acquiring medical equipment through higher prices for patients.
The study also notes that the United States imports valuable pharmaceutical products from China, and while the administration is not planning to impose tariffs on these goods right now, an extension of the tariffs to these goods could create significant shortage problems.
Read the report here.