US exempts $50B in medical device products from China tariffs

Dive Brief:

• Disposable electrocardiograph electrodes, certain X-ray and MRI components, otoscopes and anesthesia masks are among medical device products exempted from tariffs on China, the United States Trade Representative announced Friday.
• AdvaMed told MedTech Dive the Section 301 tariff exclusions, in effect until Sept. 20, 2020, and which will be retroactively applied, represent $50 billion of medical device-related trade.
• The medical device industry group has been active pushing for exclusions from tariffs for medical products manufactured by its member companies. USTR said it would continue to issue decisions on exemption requests “on a periodic basis.”

Dive Insight:

The decision to lift tariffs from certain items made in China is a boon for the medical device industry, which has been arguing patients’ lives were put at risk by the trade war.
Varian said certain components sourced from China for linear accelerators made in the U.S. were also exempted from the tariffs.
“We are thankful for the USTR and U.S. government’s continued recognition of the positive impact of Varian treatment technology in the fight against cancer by granting a tariff exclusion to these components,” Varian CEO Dow Wilson said in a statement. “The supply of components without disruption plays an important role in our system manufacturing process so we can continue delivering cancer fighting technology and honor our commitment to creating a world without fear of cancer.”
AdvaMed said it continues to work with USTR on the U.S.-China trade discussions, saying it “strongly opposes” tariffs on the industry from either country.
“We remain hopeful for a successful conclusion of the negotiations, which are delicate and with broad-reaching implications that our industry is watching closely on behalf of the patients we serve,” Ralph Ives, AdvaMed executive vice president of global strategy and analysis, said in an email.
Original Article: (https://www.medtechdive.com/news/us-exempts-50b-in-medical-device-products-from-china-tariffs/563501/)