Tariffs Impacting Medical Device Supply Chains

Trade Barriers Threaten Patient Care: Medtech Canada is urging federal, provincial, and territorial governments—as well as the U.S.—to adopt a “Zero-for-Zero” tariff policy on medical devices and health supplies, ensuring these essential products remain exempt from trade tariffs and sanctions that could disrupt care.

Ongoing Supply Chain Strain: With nearly 40% of Canada’s medical technology imports coming from the U.S. and the industry still recovering from pandemic-related supply chain issues, Medtech warns that new tariffs could worsen shortages and threaten the continuity and quality of patient care.

National and Global Advocacy: The association applauds Canada’s current tariff relief and calls for it to be extended indefinitely, while continuing to advocate against restrictive procurement policies—particularly in Ontario—and working with U.S. and global partners through the Global Medical Technology Alliance to promote a worldwide zero-tariff standard for medical technologies.

With ongoing sectoral tariffs between Canada and the U.S., and as consultations occur in lead-up to next year’s review of the Canada-United States-Mexico Free Trade Agreement (CUSMA), Medtech Canada continues to call on our federal government, provinces and territories, and the U.S. government to take a “Zero-for-Zero” tariff approach to medical devices and other critical health supplies—exempting these life-saving products from any tariffs or sanctions on either side of the border due to their critical role in enabling patient care and ensuring the continuity of care in both countries’ health care systems.

Tariffs and sanctions are not merely an economic issue—they are a public health risk. Patients, healthcare providers, and innovators depend on open, predictable, and fair trade in medical devices and other health care products to save and improve lives.

Canada’s health care providers and patients are tremendously reliant on medical devices to enable the delivery of health care. There are tens of thousands of medical device technologies used each day in health care in Canada (including many that aren’t available from a Canadian manufacturing facility) and nearly 40% of Canada’s medical technology imports come from the U.S.

The supply chain challenges Canada faced during the pandemic were immense and hugely disruptive to patient care. These supply chain challenges highlighted the critical importance of this sector to the health of Canadians and to the continued functioning of our health care systems. The medical device industry is still dealing with post-pandemic supply chain challenges across a vast number of clinical areas, and we need to avoid anything that would exacerbate this situation and jeopardize the continuity or quality of patient care.

“We commend the federal government for its current tariff relief on medical devices and other health care products, and would urge the government to continue with this approach in any new trade agreement,” said Nicole DeKort, President and CEO of Medtech Canada. “If a renewed trade deal with the U.S. is not reached, then the current tariff relief on these products must be extended indefinitely.” 

Medtech Canada has also advocated strongly to our country’s provincial and territorial governments to avoid any procurement sanctions that restrict patient and clinician access to medical devices and other health care supplies. While most provincial policies have avoided excessive restrictions on medical devices, unfortunately Ontario’s Procurement Restriction Policy places unnecessary and complicated restrictions that should not apply to the health care sector and Medtech Canada will continue its advocacy with the Ontario government to ensure that the health care sector gets fully exempted from this harmful policy. 

Medtech Canada strongly supports Canadian-based medical device manufacturers and the association is working hard to limit the impacts of potential tariffs from the U.S. on these innovators. The U.S. health care system and American patients are also reliant on medical device technologies that are manufactured in Canada, and throughout these trade negotiations, Medtech Canada has worked closely with its counterpart in the U.S., AdvaMed, who has been requesting tariff exemptions from the U.S. government for medical devices being imported from Canada and has emphasized the importance of CUSMA for the sector.

Given the global humanitarian implications of tariffs on medical technologies, a zero-for-zero approach to tariffs is being advocated for globally through the Global Medical Technology Alliance (GMTA), a coalition of national and regional medtech associations (including Medtech Canada) representing the vast majority of the world’s medical device, diagnostic, and digital health innovators.

“We call on the federal government, as well as our provincial and territorial leaders, to join this vital global effort to safeguard our health care systems and prioritize the health and well-being of patients by ensuring that medical devices and other health care supplies are free of tariffs and trade barriers,” said DeKort. “Patients and our health care systems must come first—always,” 

Gerry Frenette is VP, Public and Member Relations at Medtech Canada.