From hearing aids to pacemakers, tariffs may drive up medical device costs – National

Whether pacemakers, insulin pumps or artificial hip joints, Canadians may face a spike in health costs if U.S. President Donald Trump imposes a 25 per cent tariff on imports from Canada, set to take effect Saturday.

With the looming tariff, Medtech Canada, a national association representing 120 medical technology companies, warned the cost of health technologies could rise significantly — in both countries — if tariffs are implemented.

“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,” said Gerry Frenette, vice president of Medtech Canada.

“We’re working with our partners in government and other key stakeholders to help ensure that patients and clinicians have continued access to all the necessary medical technologies they need,” he told Global News in a Friday email.

Medical equipment has typically been exempt from tariffs between Canada and the U.S., largely due to free trade agreements like the Canada-United States-Mexico Agreement (CUSMA).

However, Trump’s proposed tariffs could mark a significant shift, potentially making the costs of medical equipment — such as MRI machines, ventilators and wheelchairs — much more expensive.

In a letter to Canada’s Finance Minister Dominic LeBlanc on Jan. 21, Medtech warned the potential tariffs on Canadian exports, along with retaliatory tariffs imposed by Canada on the U.S., would have an “immense” impact on the health-care system, burdening patients significantly.

“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 stated.

Canada’s largest trading partner for medical devices is the United States.

In 2022, medical device imports from the U.S. were valued at C$5.2 billion, representing 38 per cent of Canada’s total medical device imports, according to Canada’s industry sector intelligence.

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And the same year, Canada’s medical device exports to the U.S. were C$3.08 billion, or 74 per cent of Canada’s total medical device exports.

The letter emphasized that due to the significant trade 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.”

The letter also stated that Canadian technologies play a key role in supporting the U.S. health-care system and its citizens. U.S. tariffs on these products would drive up production costs, which could ultimately make health-care less affordable for providers and patients in both countries.

“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 said.

“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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