Dental practice owners are bracing for potential price hikes for supplies and equipment under President Donald Trump's tariff plan.
President Trump's 25% tariffs on goods from Mexico and Canada went into effect March 4, but they were later delayed until April 2 as long as the countries' imports comply with the U.S.-Mexico-Canada Agreement signed during Mr. Trump's first term.
Only about 50% of imports from Mexico and 38% of those from Canada comply with the terms of that agreement, CNN reported March 10.
President Trump also imposed a 20% tariff on imports from China March 4, which is still in effect despite the delays granted to Canada and Mexico. Tariffs are also expected to go into effect for the European Union March 12.
Several healthcare leaders have raised concerns about how these tariffs could impact the U.S. healthcare supply chain.
"The fact is Canada and Mexico are critical partners in protecting the healthcare supply chain. Increasing costs on healthcare imports threatens the immediate availability of essential supplies and increases costs on the entire healthcare system," Charlene MacDonald, executive president of public affairs for the Federation of American Hospitals, told Becker's in a statement.
The American Hospital Association also warned that tariffs on aluminum and steel imports will affect medical devices, including surgical instruments, implants, plates and screws.
A coalition of dental organizations recently wrote a letter to the Trump administration stating that tariffs on dental products could lead to increased costs and limited access to supplies.
Barry Lyon, DDS, a chief dental officer for the division of orthodontics and pediatric dentistry for Dental Care Alliance, agreed that tariffs could increase the financial strain on practices and DSOs.
"Trump claims the tariffs would motivate U.S. companies to manufacture more goods in the states," he told Becker's. "What Trump doesn’t state is that tariffs are just another tax that will eventually be passed along to consumers, whether corporate or individual. Should U.S. companies plan to manufacture more at home, the cost of doing so is sure to increase, not to mention the time it takes to increase stateside manufacturing to a level that is not affected by supply chain issues."
David Rothman, DDS, described the far-reaching impact tariffs could have on the dental industry, including increased costs for materials, computers and other technology used in practices. Staff members will also be faced with higher costs for food, clothing and housing, leading to more requests for higher pay. These costs could also lead to fewer patient visits, he said.
"Dental practices may have to fold because the cost of overhead will become too high for sustainability. Inflation will spiral upwards and we will be sent into, at minimum, a recession," Dr. Rothman told Becker's. "It is not a pretty picture, and based on a poor understanding of economics and tariffs. Sadly, history is repeating itself."