Handling the coronavirus crisis

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An alarming unintended consequence of President Donald Trump’s misguided trade war with China has suddenly threatened to cripple the US fight against the COVID-19 pandemic. The administration’s tariffs on Chinese medical products may contribute to shortages and higher costs of vital equipment at a time of nationwide health crisis. In the last two years, Trump’s policy has forced China to divert the sales of these products—including protective gear for doctors and nurses and high-tech equipment to monitor patients—from the United States to other markets, and now the US medical establishment faces looming trouble importing these necessities from other countries, which may be hoarding them to meet their own health crises.

To deal with this issue, the Trump administration quietly announced on March 10 and 12, 2020, that it would temporarily reduce some tariffs imposed on Chinese products to treat the coronavirus pandemic. But those actions, which effectively acknowledged that trade wars can endanger public health, covered only a handful of urgently needed products. Trump’s tariffs had been slapped on nearly $5 billion of US imports of medical goods from China, about 26 percent of all medical goods imported from all countries. Now that there are potential supply shortages globally, the US health crisis demands that the administration comprehensively and permanently reverse these policies of self-harm.

This calamity was hardly unforeseen. In August 2018, the Trump administration’s US Trade Representative convened a hearing to ask the public whether it should impose tariffs on such products. Matt Rowan, president of the Health Industry Distributors Association (HIDA), warned against the impact that Trump’s tariffs would have on the American health sector. “These products are essential to protecting healthcare providers and their patients every single day,” he said with shocking prescience. “The healthcare products on the proposed list are used widely throughout healthcare settings and are a critical component of our nation's response to public health emergencies.” His warnings, echoed by many others over the next year, went unheeded.[1] Trump’s reversal earlier in March served as an implicit indictment of his administration’s own policy.

Trump's trade policy is hampering the US fight against COVID-19 | PIIE