A bipartisan, bicameral group of senators have introduced legislation that would give the president new authority to negotiate and strike trade deals—which include the handling of tariffs—with foreign countries for medical goods such as drugs and devices.
The bill, also backed by industry pharmaceutical and group purchasing organizations, aims to strengthen the country’s medical supply chain, which lawmakers said became strained during the COVID-19 pandemic.
Of note, though it includes provisions for Congressional oversight, the bill’s text as shared by lawmakers would expand President Donald Trump’s authority to adjust duties—by removal, extension or addition—on medical goods from “trusted trade partners” at a time when Trump has rapidly introduced new tariffs on America’s traditional trade partners.
Specifically, it reads that the president may “proclaim such modification of any existing duty, such continuance of existing duty-free or excise treatment, or such additional duties, as the President determines to be required or appropriate to carry out any such trade agreement” for medical supplies.
Statements from the supporting legislators and background context included in the bill frame the legislation as a way to diversify away from major exporters like China, promote regulatory cooperation and, notably, lower the barriers on medical good trade. The language authorizing additional duties—which may still be amended in committee—would appear to conflict with the latter goal and Democrats’ stated opposition to Trump’s tariffs.
“The Medical Supply Chain Resiliency Act is a critical step toward ensuring that America’s healthcare providers have reliable access to the essential supplies they need,” Sen. Thom Tillis, R-North Carolina, who introduced the bill, said in a release. “By strengthening trade partnerships with our allies and expanding domestic manufacturing, we can enhance our nation’s preparedness for future health challenges. I’m proud to support this bipartisan effort to reinforce our medical supply chains and protect public health.”
Joining Tillis are Sens. Chris Coon, D-Delaware, John Cornyn, R-Texas, and Michael Bennet, D-Colorado; as well as Reps. Brad Schneider, D-Illinois, and Nicole Malliotakis, R-New York. Fierce Healthcare has reached out to the lawmakers’ offices for additional comment on the bill’s language authorizing the modification of duties.
“Working with our most trusted trading partners to make our supply chains more resilient will strengthen our response to future public health emergencies while ensuring health care providers have access to essential medical products and patients have access to life-saving care,” Coons said in a release.
The bill does include requirements that the president give Congress a 60-day written notice before entering new negotiations and a report on any deals 60 days before they go into effect, among other areas of oversight.
Lawmakers’ release announcing the bill’s introduction in the Senate (a House version is coming early next week) included supportive statements from PhRMA, the pharmaceutical industry’s lobbying group; the U.S. Chamber of Commerce; and healthcare group purchasing organization Premier Inc.
John Murphy, senior vice president for international policy for the U.S. Chamber, noted in the lawmakers’ release that the bill “would direct the U.S. Trade Representative to negotiate trade agreements with trusted allies to eliminate tariffs and other trade barriers that weaken the U.S. medical goods manufacturing base and that of our allies. … Only close allies and partners would qualify for such agreements. Close consultation with the legislative branch would be essential, and Congress would retain a right to disapprove any agreements.”
Soumi Saha, senior vice president of government affairs at Premier, told Fierce Healthcare that the legislation’s stated goals should find broad support in Washington.
“This legislation is something that I feel like everyone can get behind—regardless of which side of the aisle they sit on,” she said. “I’m optimistic that the bipartisan and bicameral nature of this legislation will help expedite its passage as we all have skin in the game when it comes to securing our healthcare supply chain and redefine who our trusted trade partners are in a post-pandemic world.”
A prior version of the Medical Supply Chain Resiliency Act had previously been introduced in both chambers in 2023, again with bipartisan support.
The latest version comes as trade deals with allied nations fall under heavy scrutiny. Trump, a longtime advocate of tariffs, has criticized existing trade deals as a “rip-off” for the U.S. and since taking office has threatened, enacted and paused numerous new duties—primarily on China, Mexico and Canada, though recent weeks have added some European allies to his list.
February polling of hospital industry leadership conducted by Black Book Market Research revealed widespread anxiety over costs stemming from the president’s tariffs.
The Healthcare Distribution Alliance, which represents almost 40 such distributors, warned that tariffs on pharmaceuticals would strain the supply chain and affect patients.
In February, the American Hospital Association sent Trump a letter requesting that drugs and devices be exempt from new trade tariffs, citing similar concerns.
The White House has said its tariffs will help boost domestic manufacturing, and has pointed to a recent announcement from Eli Lilly and Company on plans to double its total U.S. capital expansion commitments to more than $50 billion since 2020 as a win.
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