Trump tariff threat looms over robotics and medical devices

The Trump administration has launched national security investigations into imports of robotics, industrial machinery and medical devices, a move that could pave the way for fresh tariffs and raise costs for consumers, hospitals and manufacturers.

The Department of Commerce said Wednesday that the probes, opened Sept. 2 under the “Section 232” of the Trade Expansion Act, will assess whether such imports threaten U.S. national security, according to Federal Register filings.

The latest probes expand the list of items that could be exposed to higher tariffs to include personal protective equipment such as surgical masks, N95 respirators, gloves and other medical consumables, including syringes, needles and prescription drugs.

They also extend to imported medical equipment such as wheelchairs, hospital beds and diagnostic and treatment devices like pacemakers, insulin pumps and heart valves.

The probes could be used as justification for fresh sectoral tariffs aimed at boosting domestic production of goods deemed critical to national security.

The department is seeking comments from companies on their projected demand for these products and whether domestic production can meet local demand and the role of foreign supply chains.

Firms are also invited to outline the impact of foreign subsidies and what the administration described as “predatory trade practices.”

The Trump administration has previously invoked Section 232 to impose levies on automobiles and parts, copper, steel and aluminum.

Investigations into imports of pharmaceuticals, semiconductors and chip components such as silicon wafers, chipmaking equipment and related downstream products are also ongoing, reflecting Washington’s concerns over reliance on overseas supply chains.

Any new duties resulting from the sector-specific probes would be stacked on top of U.S. President Doanld Trump’s country-specific tariffs, though the European Union and Japan have reached agreements that could shield them from extra levies.

The U.S. depends heavily on Mexico and China for machinery, with imports from the two countries accounting for more than 18% and 17% of total U.S. machinery purchases in 2023, according to data from the U.S. International Trade Commission.

The auto industry could be among the hardest hit by the latest potential tariffs, as it accounted for the largest demand for industrial robots — 13,747 installations last year, according to the International Federation of Robotics. Most of those robots were imported, with few manufacturers producing in the U.S., the group said.

The potential levies on medical devices and protective gear could increase costs for hospitals and patients, reducing access to critical equipment and care, experts have warned.

“MedTech supply chain leaders are already reporting supply chain concerns, and we cannot afford to drive up the cost of health care for patients, or on the health care system,” said Scott Whitaker, CEO of AdvaMed, the trade group that represents medical technology and device makers. “The reality is, any increased costs will be largely borne by taxpayer-funded health programs like Medicare, Medicaid and the [Veterans Health Administration].”

Hospital trade groups have also been sounding the alarm this year, warning that higher tariffs could hurt the quality of care.

Rick Pollack, the CEO of the American Hospital Association, said in April that “disruptions in the availability of these critical devices — many of which are sourced internationally — have the potential to disrupt patient care.”

— CNBC’s Bertha Coombs contributed to this report.