MEDICAL SUPPLIES | Maloney, Axne Call for Lifting Tariffs

Tariffs have slowed imports of medical supplies from China.
Source: Chad Bown, PIIE (Peterson Institute), March 17, 2020.

April 2, 2020 — Backed by 18 of their colleagues in the House, Reps. Carolyn Maloney (D-NY12) and Cindy Axne (D-IA3) have called for the immediate lifting of tariffs on life-saving medical supplies and PPE during the coronavirus pandemic.

In their letter to U.S. Trade Representative Robert Lighthizer and U.S. Ambassador to China Terry E. Branstad, the Representatives write, “While we continue to support American manufacturers and innovation, there simply are not enough medical supplies and PPE domestically to alleviate the burden on our healthcare system.

“The tariffs add substantially to costs and delays in obtaining life-saving equipment and supplies to our healthcare providers who are in a life-and-death struggle. We can – and must – do more to enable those on the front lines to do their jobs effectively and without fear that they might become infected or spread the virus themselves.”

Joining Congresswomen Maloney and Axne on this letter are Representatives Grace F. Napolitano (D-CA), Nydia M. Velázquez (D-NY), Harley Rouda (D-CA), Lizzie Fletcher (D-TX), Danny Davis (D-IL), Vicente Gonzalez (D-TX), Donna E. Shalala (D-FL), Steve Cohen (D-TN), Sharice L. Davids (D-KS), James P. McGovern (D-MA), Ed Case (D-HI), David Scott (D-GA), Raúl M. Grijalva (D-AZ), Charlie Crist (D-FL), Matthew Cartwright (D-PA), Anna Eshoo (D-CA), Bill Foster (D-IL), Abigail Spanberger (D-VA), and Darren Soto (D-FL).

The full text of the letter follows:

Dear Ambassador Lighthizer and Ambassador Branstad:

We write to request that you immediately suspend all tariffs placed on all imports of medical supplies and equipment, including personal protective equipment under Section 301 of the Trade Act of 1974 for the duration of the rapidly developing Novel Coronavirus (COVID-19) pandemic.

The U.S. Trade Representative (USTR) recognized that tariffs on medical supplies and equipment were inappropriate when it announced on March 20 it would open a 3-month comment period for members of the public, businesses, and government agencies “to submit comments if they believe further modifications to the (Section) 301 tariffs may be necessary.”

However, we’re asking for an immediate suspension of these tariffs because we cannot afford to wait any longer. On the day the comment period was announced, there were 15,490 total cases and 201 total deaths in the United States from the coronavirus. Today, there are 209,071 total cases and 4,633 total deaths. In New York, the epicenter of the outbreak in the U.S., hospitals and healthcare systems are nearing their breaking point as the number of new cases continues to exponentially rise.

As the outbreak continues, hospitals, doctors, health care providers, and emergency management coordinators in our districts and across the nation have been sounding the alarm that their systems are being overwhelmed. Our entire healthcare infrastructure is experiencing shortages of medical supplies – like ventilators, gloves, hand sanitizer, and other essentials – and personal protective equipment (PPE) that are critical to fighting the outbreak.

While we continue to support American manufacturers and innovation, there simply are not enough medical supplies and PPE domestically to alleviate the burden on our healthcare system. The tariffs add substantially to costs and delays in obtaining life-saving equipment and supplies to our healthcare providers who are in a life-and-death struggle. We can – and must – do more to enable those on the front lines to do their jobs effectively and without fear that they might become infected or spread the virus themselves. Accordingly, we urge all of you to immediately take steps to suspend all tariffs placed on medical supplies and equipment for the duration of this public health crisis."

Nonprofit groups that have protested the continued tariffs on medical supplies include the Peterson Institute, which wrote on March 13, 2020: "President Donald Trump's trade war with China is threatening to cripple the US fight against the COVID-19 pandemic. The administration's tariffs on Chinese medical products have cut imports of these products from China and may be contributing to shortages and higher costs of vital equipment at a time of nationwide crisis. The administration has announced temporary reductions in some tariffs on Chinese medical products, but only a handful were affected. The US epidemic demands that the administration comprehensively and permanently reverse these policies of self-harm."