The United States government has initiated a new national security investigation on imported medical equipment, robots, and industrial machinery. This investigation, launched under Section 232 of the Trade Expansion Act, could pave the way for the imposition of new tariffs on a wide range of products.
The investigation not only covers traditional industrial goods but also includes personal protective equipment (PPE) such as surgical masks, N95 masks, gloves, protective clothing, as well as essential medical supplies like pacemakers, syringes, among others.
The Section 232 investigation was launched by the Secretary of Commerce on September 2. Despite the investigation being underway for several weeks, related information was not publicly disclosed until Wednesday, September 24.
According to the Federal Register, the investigation covers three main categories:
1. Personal Protective Equipment (PPE): including surgical masks, N95 masks, gloves, protective suits, and related components.
2. Medical consumables and equipment: a broad range of medical/surgical instruments (such as syringes, needles, infusion pumps, surgical knives), medical/surgical supplies (such as IV bags, gauze, sutures), as well as durable equipment like wheelchairs, crutches, and hospital beds. The investigation also includes medical devices like pacemakers, insulin pumps, coronary stents, hearing aids, and blood glucose monitors.
3. Industrial machinery and robots: programmable computer control systems, industrial stamping machines, cutting/welding/material handling machinery, high-pressure sterilizers, industrial furnaces, laser and water jet cutting equipment, among others.
The Federal Register specifically notes that the investigation does not cover prescription drugs, over-the-counter drugs, as these items are part of a separate Section 232 investigation. Additionally, drones are also subject to a separate Section 232 investigation.
The core objective of this investigation is to assess whether the import of these products poses a threat to U.S. national security and to promote domestic production of key products.
The Department of Commerce is seeking input from businesses on these products to understand current and projected domestic demand, whether domestic production capacity is sufficient, if imports are heavily concentrated in a few countries like China, among other factors.
Businesses are asked to explain the impact of foreign subsidies and “predatory trade practices,” whether overcapacity leads to unduly suppressed prices, the possibility of foreign export restrictions on these products, or using them as a “weaponized” tool, and the security risks this poses to the United States.
Previously, the Trump administration invoked Section 232 for tariffs on automobiles and parts, copper, steel, and aluminum. Investigations into the import of pharmaceuticals, semiconductor and chip components, wind turbine blades, airplanes, heavy trucks, polysilicon, lumber, and critical minerals are also ongoing, reflecting Washington’s concerns about over-reliance on overseas supply chains.
In June this year, the U.S.-China Economic and Security Review Commission held a hearing warning about the possibility of the Chinese Communist Party using “supply chain coercion” as a potential tool, emphasizing the need for the U.S. to be prepared.
If this investigation results in new tariffs, they would be in addition to the “retaliatory tariffs” imposed by President Trump on specific countries. Perhaps only the European Union and Japan enjoy special treatment (the so-called “ceiling clause”), which exempts them from additional tariffs.
According to data from the U.S. International Trade Commission (USITC), the United States heavily relies on machinery products from Mexico and China, with products imported from these two countries in 2023 accounting for approximately 18% and 17% of the total machinery purchases in the U.S.
The automotive industry could be one of the most heavily impacted sectors under the potential new tariffs.
According to the International Federation of Robotics (IFR), demand for industrial robots was highest in the industry last year, with installations reaching 13,747 units. Most of these are imported, with few manufacturers producing domestically in the U.S.