The President Biden administration announced on May 14, 2024, its intent to increase tariffs on $18 billion of imports from China—including PPE, syringes and needles—to counter what the White House calls "unfair trade practices." This decision follows a four-year review of the tariff lists from 2018 and 2019.
This strategic move targets several key sectors, including steel and aluminum, semiconductors, electric vehicles, batteries, critical minerals, solar cells, ship-to-shore cranes, and medical products. The intent is to bolster domestic industries and reduce reliance on foreign supplies.
This week, the Office of the U.S. Trade Representative (USTR) will issue a Federal Register notice outlining the procedures for public comments on the proposed tariff modifications. The notice will also provide information about an exclusion process for machinery used in domestic manufacturing, offering a chance for stakeholders to voice their opinions and seek exemptions.
Somewhat surprisingly, there is a new tariff hike on disposable medical products, including syringes and needles. According to market data, the U.S. disposable syringes market was valued at USD 2.6 billion in 2023. It is forecasted to grow at a compound annual growth rate (CAGR) of 5.4%, reaching USD 3.8 billion by 2030. Similarly, the U.S. needle market is expected to surpass USD 15 billion by 2033, with a projected CAGR of 7.3% . However, there is currently no official data available to verify how much of this involves or requires importing from China.
Based on commentary from relevant media, the recent decision to raise tariffs on a broad range of Chinese imports could significantly impact the relevant industries. This move, aimed at addressing "unfair trade practices," might encourage domestic manufacturing. However, it also carries the risk of increasing prices. Additionally, industry experts pointed out " that the new tariffs may be reminiscent of past trade policies. As these tariffs take shape, businesses should prepare for potential increases in supply chain costs, which could ultimately be passed on to U.S. consumers. Industries must balance the benefits of increased domestic production with the challenges of higher costs as they adjust to the new trade landscape.
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