Tariff whiplash 

While putting together the March issue, I spent a good amount of time updating stories (and updating them again) to keep up with President Donald Trump’s plans on tariffs. 

Even before the inauguration, I started working on a story about the possibility of tariffs on imports from China, Mexico and Canada, and the impact that would have on the HME industry. It seemed like a good bet they would happen, based on Trump’s first term as president and his stump speeches during the election. 

That was draft one. 

Shortly after the inauguration on Feb. 1, Trump announced he would implement 25% tariffs for imports from Mexico and Canada and 10% tariffs for imports from China on Feb. 4. The possibility turned into more of a certainty. 

That was draft two. 

But right before they were due to go into effect, Trump paused the tariffs for Mexico and Canada for one month as a negotiating tactic. The tariffs for China, though, those went into effect as scheduled. 

That was draft three. 

Then, separately, Trump announced on Feb. 10 that he would impose 25% tariffs on any steel and aluminum imports.  

You get the idea. 

This whiplash affected other stories, too, like Fisher & Paykel Healthcare’s announcement that tariffs would likely delay the company’s target of 65% gross margin by two to three years. 

I’m not going to pretend it’s as hard for us to keep up as, say, HME providers and manufacturers, and that’s who I’m really thinking about as these changes happen fast and furious. 

While some HME products and components were excluded from tariffs during Trump’s first administration, these are anything but uncertain times and that is not lost on AAHomecare, which has hosted a number of calls with stakeholders to discuss the impact of tariffs and its possible responses. As React Health CEO Bill Shoop said, tariffs are a “critical issue” for the HME industry. 

It’s not hard to see why. 

Unlike a home builder, who can pass the increased costs of lumber from Canada onto a homeowner (ask me how I know), HME providers can't pass the increased costs of equipment onto their customers. They’re living in a largely fixed reimbursement world that, even without the increased costs from tariffs, is untenable. 

“Manufacturers and suppliers can only absorb so much,” said Tom Ryan, president and CEO of AAHomecare. “We’re preparing a good strong industry response if a formal proposal for tariffs is made.” 

Even as I post this, Trump moved forward with the tariffs for imports from Canada and Mexico, only the next day to discuss big exemptions from said tariffs.