VGM & ASSOCIATESHealthcare MSO
Full Menu Search

Impact Of Tariffs On The DMEPOS Industry

Published in Government Relations on January 31, 2025

President Donald Trump announced on Thursday that he will impose 25 percent tariffs on Canada and Mexico starting Saturday, Feb. 1. The durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) industry is closely monitoring the situation to see what, if any, exclusions might be included for medical equipment and products. An increase in tariffs could lead to several key impacts: 

  1. Increased Wholesale Costs: The cost of importing medical equipment from overseas will rise, impacting the overall expenses for DMEPOS providers. This increase in costs is likely to be passed on to consumers, leading to higher prices for medical devices and supplies. For instance, tariffs on Chinese-made medical devices could increase prices by up to 25%, affecting a wide range of products from syringes to diagnostic equipment. 
     
  2. Access To Medical Equipment: Higher costs may limit the availability of essential medical devices, making it harder for providers to maintain adequate supplies. This could particularly impact smaller providers who may struggle to absorb the increased costs. The tariffs could also lead to shortages of critical medical supplies, as providers may reduce their orders to manage costs. 
     
  3. Timely Delivery: The tariffs could exacerbate delays in the supply chain, similar to the disruptions experienced during the supply chain shortage in 2023. The previous shipping crisis had a significant impact on the access and cost of DMEPOS, causing delays and increased expenses. Similar challenges are anticipated with the new tariffs, as increased costs and potential retaliatory measures from affected countries could further disrupt the supply chain. 

What Can You Do Now? 

Providers may face increased financial pressure, which could affect their ability to deliver timely and affordable care to patients. The industry must prepare for these potential disruptions by: 

  • Exploring Alternative Supply Sources: Identify and establish relationships with new suppliers who are not affected by the tariffs. 
     
  • Increasing Inventory Levels: Stockpile essential medical supplies to buffer against potential shortages and delays. 
     
  • Advocating For Policy Changes: Engage with policymakers to advocate for measures that mitigate the impact of tariffs on essential medical supplies. 

VGM Government Relations will keep you updated as we learn more about this. 

Get Connected

Stay up-to-date on the latest resources and news provided by VGM & Associates.

Sign Up for Email

From Our Experts

Advocacy in Action: Texas DME Providers Stand Up For Patient Care thumbnail Advocacy in Action: Texas DME Providers Stand Up For Patient Care Texas DME providers are speaking out against proposed Medicaid reimbursement rate cuts that threaten access to essential medical equipment for vulnerable patients. At a recent public hearing, voices from across the state shared powerful stories about the real-world impact of these cuts—some as high as 85%. The Shutdown Has Ended—Now It's Time To Take Action thumbnail The Shutdown Has Ended—Now It's Time To Take Action The recent government shutdown created uncertainty across the healthcare landscape, and the DMEPOS community was no exception. In the weeks ahead, critical decisions will shape the future of our industry. By getting involved early—through advocacy, education, and collaboration—you can help ensure these policies support patients and providers rather than hinder them. Notably, the Continuing Resolution (CR) includes an extension of Medicare telehealth flexibilities through January 2026... New Issue Brief: Why Medicare's Competitive Bidding Program Needs Urgent Reform thumbnail New Issue Brief: Why Medicare's Competitive Bidding Program Needs Urgent Reform The Medicare competitive bidding program for durable medical equipment (DME) was designed to reduce costs—but it's failing patients and providers. A new issue brief from Pacific Research Institute and economist Wayne Winegarden highlights what changes are urgently needed. Champions of Change: DME Advocates Driving Real Change thumbnail Champions of Change: DME Advocates Driving Real Change Real change starts with real people. In this edition of Champions of Change, we're spotlighting two DME advocates who aren't just talking about problems—they're taking action. David Griffin and Gary Rench are showing us what it means to stand up for patients, providers, and the future of our industry. Join HME Industry Letter on CB Program to CMS Administrator Oz thumbnail Join HME Industry Letter on CB Program to CMS Administrator Oz HME suppliers, manufacturers, and distributors are invited to add their company's name to a letter to CMS Administrator Dr. Mehmet Oz regarding the Administration's DMEPOS/Home Health Proposed Rule that includes provisions for a new competitive bidding round. The letter specifically asks CMS to withdraw or delay the DMEPOS provisions in the Proposed Rule and re-engage with industry, patient, and clinical stakeholders to design an evidence-based, fraud-resistant, America-First framework. Take Action Today: Urge CMS to Pause and Re-Evaluate the Competitive Bidding Program thumbnail Take Action Today: Urge CMS to Pause and Re-Evaluate the Competitive Bidding Program Now is the time to raise our voices. With the formal announcement of the Competitive Bidding (CB) Program expected as early as the end of this month, we must act swiftly and decisively. Below are two key opportunities to engage with your U.S. Representative and encourage their support for a Congressional letter urging Centers for Medicare & Medicaid Services (CMS) to pause and reassess the CB Program. Legislative Momentum in the HME Industry: Key Updates & Action Items thumbnail Legislative Momentum in the HME Industry: Key Updates & Action Items The past few months have seen a surge of legislative activity in the home medical equipment sector, with several key developments shaping policy and advocacy efforts across the industry. From new bills introduced in Congress to formal comment submissions and stakeholder mobilization, these events reflect growing momentum around critical issues affecting providers and patients alike. This article offers a comprehensive recap of recent actions and outlines important next steps for those... VGM Submits Comments Regarding the Section 232 National Security Investigation On Medical Imports thumbnail VGM Submits Comments Regarding the Section 232 National Security Investigation On Medical Imports VGM has submitted formal comments to the U.S. Department of Commerce in response to its Section 232 National Security Investigation into the importation of personal protective equipment (PPE), medical consumables, and medical equipment and devices.

Give your business an advantage over the competition.

Become a Member