While some dentists are concerned with the increased costs and supply chain challenges that could come into play under President Donald Trump's tariff plan, others are not as worried.
President Trump's 25% tariffs on goods from Mexico and Canada went into effect March 4, but they were later partially 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.
President Trump also imposed a 20% tariff on imports from China March 4, which is still fully in effect despite the delays granted to Canada and Mexico. Tariffs are also expected to go into effect for the European Union March 12.
Four dentists recently spoke with Becker's to share their predictions for how these tariffs will affect the dental industry.
Editor's note: These responses were lightly edited for length and clarity.
Question: Are you concerned with how President Trump's tariffs will impact the prices of medical supplies and equipment? How do you predict the tariffs will impact dentistry?
Mike Davis, DDS. Dentist of Smiles of Sante Fe (Albuquerque, N.M.): In the short term, supply costs will likely go up. On the positive side, the chain of dental supplies won’t be as concentrated in China. Some manufacturing will move back to the states. However, most of the dental industry supply chain will diversify to other Pacific Rim nations, like Malaysia, the Philippines, Taiwan, etc. As such, costs will elevate, but not nearly as much as the tariffs would imply.
Diversification of the supply chain may be looked at as a form of insurance. Yes, there are inherent costs with the purchase of this "insurance." However, if the U.S. dental industry faces another disaster like the COVID-19 pandemic, there will be far greater access to supplies.
Nels Ewoldsen, DDS (Davenport, Iowa): I expect tariffs will minimally impact dental fees, practice income, patient services and profits when it comes to consumable supplies. Even considering offshore laboratory fees, a 25% cost increase added to 15-20% of overhead can be absorbed for a while. When it comes to bigger ticket items, including diagnostic imaging equipment, printing and milling technology, the effect will be greater. New purchases will be delayed as workarounds are discovered and homeland technology jobs fill the gaps. Certainly, filling the gaps while rebuilding U.S. capability is the end game. Even my buddies in agriculture tell me "farmers will live with increased costs as well as revenue loss from counter-tariffed exports, so long as the U.S. is moving toward a better tomorrow."
Lakshay Goyal, DDS. Dentist of Oakland Park (Fla.) Family Dental: It's hard to know exactly where, when and what the tariffs will hit. I don't think it's worth worrying about, since as a general dentist and small business owner I don't have much control of these macroeconomic issues. At my practice, we're focused on improving our day-to-day operations and quality of care. My bigger concern is the stagnancy and decrease of insurance reimbursement in the face of inflation.
David Rothman, DDS. Dentist at David L. Rothman, DDS Pediatric Dentistry (San Francisco): I believe it will negatively impact prices and increase costs on all medical and dental supplies as the trade war spreads. So many of our products rely on rechargeable batteries and the elements needed to make them. Computers are manufactured and assembled in China. Many dental materials are made in Europe and Japan, and dental supplies and equipment are produced in China, which will negatively affect prices. Office electronics, like computers and curing lights, lasers and sensors will be impacted by a shortage of rare earth elements necessary for electronics and batteries, especially those made in China.
As for staff, the costs of their food, clothing and housing as well as personal electronics will go up. They will request greater pay raises, which will not only impact the practice now but in the future when pay raises are determined by percentage over their existing pay. Costs of dental services will also go up, impacting whether patients will come in and follow through with treatment. Additionally, with significant layoffs in the workforce, many people will be losing their insurance. 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. It is not a pretty picture, and based on a poor understanding of economics and tariffs. Sadly, history is repeating itself.