Protecting Canada's Medical Supplies from Punishing Tariffs

"The announced tariffs on Canadian exports, along with retaliatory tariffs imposed by Canada on the U.S., will likely bring significant risks to Ontario's health care system, including the disruption of access to vital equipment and supplies."

"The OHA [Ontario Hospital Association] is very concerned about the impact of this trade war on the delivery of care and is engaging with the federal and provincial governments and other stakeholders to fully understand and minimize the impact on hospitals."

"[Much is still unknown in the] evolving [political climate]."

Melissa Prokopy, vice-president, policy and advocacy, Ontario Hospital Association 

"We do stand with the government, you know, that U.S. tariffs cannot go unanswered. However, health care must be protected."

"We are looking for exemption of health-care products from any retaliatory tariffs."

"This will be very important to protect supply chain stability and prevent any kind of cost escalations." 

Christine Donaldson, chief executive, Health PRO Canada

In a global supply system, making pharmaceuticals and medical devices often involves multiple countries, so it might be difficult to pinpoint all the specific components that come through the U.S. that might be subject to counter-tariffs. Photo by Tijana Martin/The Canadian Press files

Federal and provincial governments in Canada are being urged by health associations to make certain that patients in Canada will not become caught in the crossfire of the trade war that the new Trump administration in the U.S. has imposed upon Canada. HealthPRO Canada, a company which purchases medications, supplies and equipment for over 2,000 hospitals, health-care facilities and long-term care homes across the country announced it is seeking clarity on potential future counter-tariffs. 

The company's chief executive made a comparison to the automotive industry, with the manufacturing process for many health-care supplies where raw materials and components often cross borders "several times before they reach their finished production". In other words, a fully integrated system of production shared by the U.S. and Canada. The imposition of tariffs entirely disrupts the free flow of materials and finished products.

While it is not yet clear which products in particular could potentially be affected by future counter-tariffs, some essential medications, medical devices and diagnostic imaging equipment -- including MRI and CT scanners, surgical tools and ventilators -- frequently are manufactured in the United States. 

Hospitals could also be affected through counter-tariffs on food, mattresses and other non-medical goods in the uncertainty brought about by the ongoing trade war, when U.S. President Donald Trump decided that he was dissatisfied with the existing U.S.-Canada-Mexico free trade agreement that he signed on to during his first presidential term, expressing his satisfaction at the time that negotiators representing the three North American countries had hammered out a good free trade agreement.

 

A treatment room is pictured at the Alberta Children's Hospital in Calgary, Alta. THE CANADIAN PRESS/Jeff McIntosh

 

The types of medical devices most affected by tariffs on China, Mexico, and Canada include:

1. Medical Imaging Equipment: Devices such as MRI machines, CT scanners, and X-ray machines are heavily impacted due to their reliance on imported components.
2. Surgical Instruments: Many surgical tools and instruments are imported, and tariffs can significantly increase their costs.
3. Diagnostic Equipment: Devices used for diagnostics, including blood analyzers and other laboratory equipment, are also affected.
4. Electronic Medical Devices: This category includes devices like pacemakers, defibrillators, and other electronic health monitoring equipment.
5. Personal Protective Equipment (PPE): Items such as gloves, masks, and gowns, which are crucial for healthcare workers, face increased costs due to tariffs.