Whether or not pacemakers, insulin pumps or synthetic hip joints, Canadians might face a spike in well being prices if U.S. President Donald Trump imposes a 25 per cent tariff on imports from Canada, set to take impact Saturday.
With the looming tariff, Medtech Canada, a nationwide affiliation representing 120 medical know-how corporations, warned the price of well being applied sciences might rise considerably — in each international locations — if tariffs are carried out.
“Medtech Canada has been advocating on behalf of the medical technology industry on this important matter, and our members are planning for and taking this tariff threat very seriously,” stated Gerry Frenette, vice chairman of Medtech Canada.
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Medical tools has usually been exempt from tariffs between Canada and the U.S., largely attributable to free commerce agreements just like the Canada-United States-Mexico Settlement (CUSMA).
Nonetheless, Trump’s proposed tariffs might mark a major shift, probably making the prices of medical tools — corresponding to MRI machines, ventilators and wheelchairs — way more costly.
In a letter to Canada’s Finance Minister Dominic LeBlanc on Jan. 21, Medtech warned the potential tariffs on Canadian exports, together with retaliatory tariffs imposed by Canada on the U.S., would have an “immense” impression on the health-care system, burdening sufferers considerably.
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“The pandemic and post-pandemic supply chain challenges highlighted the immense importance of our sector. In recent years, there has been significant growth in the manufacturing of medical technologies in Canada, but many of these manufacturers are reliant on U.S.-based suppliers for raw materials and intermediary products,” the letter acknowledged.
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Canada’s largest buying and selling accomplice for medical gadgets is the US.
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In 2022, medical gadget imports from the U.S. have been valued at C$5.2 billion, representing 38 per cent of Canada’s whole medical gadget imports, in response to Canada’s trade sector intelligence.
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And the identical 12 months, Canada’s medical gadget exports to the U.S. have been C$3.08 billion, or 74 per cent of Canada’s whole medical gadget exports.
The letter emphasised that as a result of important commerce relationship, “the medical technology sector should not be targeted for retaliatory tariffs against the U.S., as the impact on our health-care system and patients would be too immense.”
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The letter additionally acknowledged that Canadian applied sciences play a key function in supporting the U.S. health-care system and its residents. U.S. tariffs on these merchandise would drive up manufacturing prices, which might finally make health-care much less reasonably priced for suppliers and sufferers in each international locations.
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“Furthermore, U.S. tariffs diminish the ability of Canadian medical technology companies to compete in the U.S. market, which, as previously mentioned, is our largest export destination,” the letter stated.
“The integrated nature of the North American supply chain of medical technologies means that tariffs from both sides of the border will reduce market access and impact the affordability and accessibility of healthcare in both Canada and the U.S.,” it concluded.
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