New China Tariffs on Medical Supplies Unsettles Supply Chain

On Tuesday, May 14 2024, President Biden implemented new tariffs on Chinese imports such as electric vehicles, solar cells, steel, and medical equipment. The reason behind these tariffs stems from US President Biden’s mission to counter China’s unfair trade practices.[1]

The proposed tariffs are to be phased in over the next three years. Tariff’s to take effect in 2024 include electric vehicles (EVs), steel, aluminum, syringes, needles, and more. Some tariffs will see the steepest increase by 2026. [2] These tariff increases are intended to  bolster up a strong domestic medical supply industry that was essential during the COVID-19 pandemic. It aims to support those domestic manufacturers and suppliers who continue to produce products used daily in every hospital across the country. The federal government and the private sector continue to invest in domestic industrial ventures in order to ensure other medical products reach American health care workers and patients and they have access to critical medical supplies when needed.[2]

American companies continue to struggle with the competition (China) and low-priced supplies available on the market.

Here’s what you need to know… 

1. Products like lithium-ion EV batteries will see a tax jump from 7.5% to 25% in 2024. The tariff rate on natural graphite and permanent magnets will increase from zero to 25% in 2026. The tariff rate for certain other critical minerals will increase from zero to 25% in 2024.[1]
2. The tariff rates on syringes and needles will increase from 0% to 50% in 2024. [1]
3. For certain personal protective equipment (PPE), including certain respirators and face masks, the tariff rates will increase from 0–7.5% to 25% in 2024. [1]
4. Tariffs on rubber medical and surgical gloves will increase from 7.5% to 25% in 2026. [1]

Diversification is key to building a resilient supply chain. S2S Global remains focused and committed in partnership with our customers on resilient solutions so that together we can continue to successfully navigate the ever changing supply chain landscape.

Credit:

[1] The White House (2024, May 14). FACT SHEET: President Biden Takes Action to Protect American Workers and Businesses from China’s Unfair Trade Practices. The White House. https://www.whitehouse.gov/briefing-room/statements-releases/2024/05/14/fact-sheet-president-biden-takes-action-to-protect-american-workers-and-businesses-from-chinas-unfair-trade-practices/

‌[2] Biden hikes tariffs on Chinese EVs, solar cells, steel, aluminum — and snipes at Trump. (2024, May 14). AP News. https://apnews.com/article/biden-china-tariffs-electric-vehicles-evs-solar-2024ba735c47e04a50898a88425c5e2c

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