WASHINGTON — February 21, 2025 — The American Medical Manufacturers Association (AMMA) is committed to ensuring the resilience of America’s healthcare supply chain by advocating for policies that bolster domestic medical manufacturing.
Goal: Strengthening America’s Critical Medical Supply Chain
In 2025, AMMA’s Federal Policy Priorities with the new Presidential Administration and 119th Congress focus on targeted trade enforcement, strategic government procurement, and legislative action to protect and grow America’s capacity to produce critical medical supplies and personal protective equipment (PPE).
Targeted Trade Enforcement: Combating Unfair Competition
AMMA supports a strategic approach to trade policy that safeguards domestic manufacturers and prevents market distortions caused by unfair foreign competition. Key trade priorities include:
- Targeted Tariffs & De Minimis Loophole Closure – AMMA supports targeted tariffs that protect domestic manufacturers from unsafe and subsidized products from China. Broad-based healthcare tariffs could lead to higher expenses for U.S. patients and providers.
- Preventing a “China 2.0” Scenario – AMMA calls for vigilance against Southeast Asian nations with weak labor, non-democratic governance, and poor environmental standards that could replicate China’s unfair trade practices.
- Stopping Dumped Products & Transshipment Schemes – AMMA urges more vigorous enforcement against illegally underpriced imports that undermine U.S. manufacturing and threaten supply chains.
Government Procurement: Strengthening the Strategic National Stockpile
To modernize the Strategic National Stockpile (SNS) and ensure rapid, reliable access to medical supplies during emergencies, AMMA recommends:
- Implementing a Vendor-Managed Inventory system to maintain surge capacity within domestic production facilities.
- Shifting from a warehouse-centric model to a dynamic rotation-based system that prevents waste from expired products.
- Establishing long-term contracts with domestic manufacturers to sustain production capabilities and readiness.
- Creating financial incentives for manufacturers to maintain excess production capacity, ensuring rapid response during crises.
Make PPE in America Act: Strengthening Domestic Procurement
AMMA advocates for full implementation of the Make PPE in America Act, which mandates that federal agencies purchase domestically manufactured PPE and medical supplies. To reinforce this commitment, AMMA proposes:
- Requiring DHS, VA, and HHS to issue clear regulations enforcing the law.
- Strengthening oversight under the Made in America Initiative (MAIO) to ensure procurement waivers are granted only under extraordinary circumstances.
- Ensuring consistent enforcement of domestic procurement requirements across all federal agencies to create a stable market for U.S. manufacturers.
Enhancing CMS Procurement Programs
AMMA supports expanding domestic preference initiatives under the Centers for Medicare & Medicaid Services (CMS) by:
- Developing standardized language for domestic preference policies to ensure consistency.
- Expanding the CY 2025 OPPS/IPPS domestic preference model to include additional critical medical supplies such as gloves, gowns, needles, and syringes.
- Creating payment adjustments that account for the higher costs associated with domestic manufacturing will ensure a level playing field for U.S. producers.
Legislative Advocacy: Protecting U.S. Medical Manufacturing
AMMA backs key legislative efforts to strengthen domestic medical manufacturing, including:
- Restoring Trade Fairness Act – A bipartisan bill that revokes China’s preferential trade status and imposes higher tariffs to shield U.S. manufacturers from unfair competition.
- Expanding R&D Tax Credits – Supporting domestic innovation by making research and development tax credits permanent.
- Extending Provisions from the 2017 Tax Cuts and Jobs Act – Making the 100% bonus depreciation and Section 199A pass-through deduction permanent to encourage investment in domestic production.
AMMA’s Executive Director, Eric Axel, said, “By advocating for these critical policy changes, AMMA is working to fortify America’s critical medical supply chain, protect domestic manufacturers from unfair competition, and ensure that the nation’s healthcare system remains resilient. With targeted trade policies, strategic government procurement, and strong legislative action, the U.S. can reduce its reliance on foreign suppliers and build a sustainable, high-quality medical manufacturing industry at home.”
Posted: February 21, 2025
Source: The American Medical Manufacturers Association (AMMA)
