AMMA’s Recommendations to the USTR on Reciprocal Tariffs

Protecting the U.S. Supply Chain for Critical Medical Supplies

In February, President Donald J. Trump issued a Presidential Memorandum to develop a comprehensive strategy to address inequities in U.S. trade relationships and counter one-sided trading practices. The “Fair and Reciprocal Plan” aimed to correct longstanding global trade imbalances and ensure equitable treatment among trading partners. In response, Amb. Jamieson Greer, the U.S. Trade Representative, sought public comments to identify and address unfair trade practices impacting key industries.

The American Medical Manufacturers Association (AMMA) submitted comments and recommendations to strengthen domestic production of critical medical supplies, such as face masks, respirators, gloves, syringes, and needles. AMMA highlighted the importance of the USTR’s investigations in recognizing these products as a strategic sector tied to national security.? AMMA is also grateful for bipartisan support in Congress for many of these comments and recommendations.

China remains a dominant supplier of these goods but has engaged in harmful trade practices undermining U.S. manufacturing. Addressing these issues is essential for building a robust domestic supply chain, especially given safety concerns surrounding imported items such as defective gloves, plastic syringes, and substandard N95 masks.

While AMMA supports measures to counter unfair competition, it warns against broad-based tariffs that lack strategic focus. AMMA’s recommendations also emphasize targeted policies that protect American jobs and innovation while ensuring access to high-quality medical supplies. By addressing unfair trade practices and reshoring manufacturing, AMMA aims to safeguard patient safety and reorient global supply chains for critical medical products.

Increased Tariffs on PPE Imports: AMMA advocates for raising Section 301 tariffs on face masks and medical gloves to a minimum of 100%, effective immediately. This measure would protect domestic manufacturers from unfair competition and bolster U.S. production capabilities.

Eliminating the De Minimis Loophole: AMMA calls for eliminating the de minimis loophole, which allows unsafe and low-quality Chinese products to enter U.S. markets duty-free. Closing this loophole would help safeguard American manufacturers and ensure higher-quality medical supplies.

Reshoring Critical Supply Chains: AMMA emphasizes a whole-of-government approach to reshoring supply chains for essential medical products. Policies incentivizing domestic manufacturing and prioritizing procurement of U.S.-made healthcare products are vital to ensuring access to critical supplies during emergencies.

Caution Against Broad-Based Tariffs on Allies: AMMA’s letter warns against imposing broad tariffs on healthcare products from allied nations like Canada, Europe, and Mexico. Such actions could disrupt supply chains, increase costs, weaken innovation, and inadvertently benefit lower-quality competitors like China.

Vigilance Against Unfair Trade Practices: AMMA urges the Administration to remain vigilant against Southeast Asian nations engaging in unfair trade practices, such as dumping or transshipment schemes, which exploit weak labor and environmental standards. Undemocratic nations could emerge as China 2.0.?

Strategic Trade Enforcement: Protecting domestic manufacturing and frontline workers requires robust trade enforcement policies to combat dumping and other harmful practices that undermine U.S. industries.

AMMA’s recommendations enthusiastically support the President’s assertion that action is needed and reflect a balanced approach. AMMA advocates for protective measures against unfair trade while cautioning against actions that could harm allied relationships or disrupt global supply chains.?

These proposals aim to strengthen the resilience of the U.S. healthcare system and ensure access to high-quality medical supplies for patients and providers by focusing on reshoring critical manufacturing and enforcing fair trade practices. The USTR is encouraged to act swiftly on these recommendations to secure America’s leadership in healthcare innovation while safeguarding its economic interests.