TARIFF VIBE CHECK — President-elect Donald Trump’s pledge to enact across-the-board tariffs isn’t going over well in the health care industry, Ben and POLITICO’s David Lim report. Some in the sector think they could financially harm hospitals and raise prices for consumers. “It would be unsustainable for the health care industry,” said Soumi Saha, senior vice president of government affairs at Premier Inc., which helps hospitals get discounts from vendors. “Combined with inflation, rising labor costs, decreasing reimbursement, and the cost with supplies, it would be unsustainable” without a government effort to boost domestic manufacturing. Angie Boliver, CEO of the Healthcare Supply Chain Association, which represents group purchasing firms that negotiate prices for hospitals, said Trump must exempt critical medical products and supplies to avoid disruptions. Those concerns come amid broader anxiety from economists who project that Trump’s trade policies could cause inflation and lead companies to pass costs on to consumers. Hospital and pharmaceutical groups have said previously that tariffs could deepen financial stress on health systems and hamper pharmaceutical innovation. Trump’s message: On the campaign trail, Trump said the tariffs would prevent foreign countries from “ripping off” the U.S. He made them a central part of his economic message, arguing they would boost domestic industry and safeguard against overreliance on adversaries like China for key supplies. Trump has also pledged corporate tax cuts for companies making their goods in the U.S., which could help lower the costs of medical products. Trump promised to impose an up to 20 percent across-the-board tariff on trillions of dollars in imports and a 60 percent tariff on all Chinese goods coming into the country in a significant expansion of duties from his first term. Trump spokespeople didn’t directly address concerns about health care. “President Trump will work quickly to fix and restore an economy that puts American workers [first] by re-shoring American jobs, lowering inflation, raising real wages, lowering taxes, cutting regulations, and unshackling American energy,” RNC spokesperson Anna Kelly said in a statement. Not all critics: The Trump campaign and some supporters of domestic production see his election as a mandate for action on tariffs — which he can impose without congressional approval — and say they are needed to combat China’s influence. They also note that many Democrats favor tariffs, at least in some cases. Those include President Joe Biden, who imposed them on medical supplies this year. Lawmakers in Congress in both parties are looking to reduce reliance on China in medical supply chains. “Trump and [Vice President-elect JD] Vance have made it clear it is very important to them, and one of the main reasons that people voted for them was to make sure that domestic manufacturers are protected and more manufacturing jobs come back to the U.S.,” said Eric Axel, executive director of the American Medical Manufacturers Association. “It's critical for people to understand that it may cost more ... but big things require big ideas and change. Sometimes we just have to go through it.” WELCOME TO FRIDAY PULSE. What a week! Help us with our post-election coverage by sending your tips, scoops and feedback to ccirruzzo@politico.com and bleonard@politico.com and follow along @ChelseaCirruzzo and @_BenLeonard_.
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