New U.S. tariffs risk increasing health care costs and disrupting integrated medical technology supply chains

MISSISSAUGA, ON, Nov. 3, 2026 /CNW/ -- Medtech Canada is very concerned that medical technologies, diagnostics and laboratory products are among the Canadian goods now subject to new 50 per cent U.S. tariffs under Section 338.

The tariffs, which took effect October 30, capture a significant share of Canada's medical technology exports to the United States and include products used by hospitals, laboratories and health care providers.

"Medical technologies should not be caught in the crossfire of a trade dispute," said Nicole DeKort, President and CEO of Medtech Canada. "A 50 per cent tariff on products used to diagnose and treat patients risks increasing costs for U.S. hospitals and laboratories, disrupting supply chains and ultimately impacting patient care."

Canada and the United States have built deeply integrated medical technology supply chains. Components, sub-assemblies and finished products move across the border, supporting manufacturers and health systems in both countries. Many medical technologies are also highly specialized and regulated and cannot simply be replaced without clinical evaluation, validation or training.

In 2024, Canada imported approximately C$5.9 billion in medical devices from the United States, while exporting approximately C$4.1 billion to the U.S. The United States is by far Canada's largest supplier of medical devices.

"Canada is an important customer for the U.S. medical technology industry," said DeKort. "Tariffs that disrupt this integrated market risk creating costs and supply challenges on both sides of the border. Patients should not pay the price for a trade dispute."

A strong, integrated medical technology sector is also essential to North American sovereignty and health security. Strengthening our shared capacity to manufacture and supply critical medical technologies within North America reduces our collective dependence on overseas supply chains and makes both countries more resilient during emergencies and global disruptions. Trade barriers between Canada and the United States risk weakening, rather than strengthening, that shared resilience.

Medtech Canada supports the Global Medical Technology Alliance's call for reciprocal zero-for-zero tariffs on medical technologies. Canada has also taken steps to protect health care from the impact of its counter-tariffs, including tariff remission for goods used in the provision of medically necessary health care.

Medtech Canada believes the best outcome for patients and health systems in both countries is clear: zero tariffs on medical technologies in both directions.

Medtech Canada will continue working with the Government of Canada and other partners to protect patient access and maintain resilient North American medical technology supply chains.

About Medtech Canada
Medtech Canada is the national association representing the medical technology industry in Canada. The association advocates for achieving patient access to leading edge, innovative technology solutions that provide valuable outcomes. Medtech Canada members are committed to providing safe and innovative medical technologies that enhance the quality of patient care, improve patient access to health care, and help enable the sustainability of our health care system. The medical technology industry in Canada employs over 88,000 Canadians. www.medtechcanada.org

SOURCE Medtech Canada