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Health care company says Trump tariffs will cost it $60M–$70M this year

In the call, Grade noted that only a small fraction of Baxter’s total sales are in China. But, “given the magnitude of the tariffs that have been enacted between the two countries, these tariffs now account for nearly half of the total impact,” he said.

The Tribune reported that Baxter is now looking into ways to dampen the financial blow from the tariffs, including carrying additional inventory, identifying alternative suppliers, alternative shipping routes, and “targeted pricing actions.” Baxter is also working with trade organizations to lobby for exemptions.

In general, the health care and medical sector, including hospitals, is bracing for price increases and shortages from the tariffs. The health care supply chain in America is woefully fragile, which became painfully apparent amid the COVID-19 pandemic.

Baxter isn’t alone in announcing heavy tariff tolls. Earlier this week, GE Healthcare Technologies Inc. said the tariffs would cost the company around $500 million this year, according to financial service firm Morningstar. And in April, Abbott Laboratories said it expects the tariffs to cost “a few hundred million dollars,” according to the Tribune.

Over 86% of surveyed health care providers are short on IV fluids

baxter, fda, health, Helene, HHS, hospital, IV fluid, Science, shortage, surgeries / Kris Guyer / October 11, 2024

Trucks and Gatorade

Federal officials, meanwhile, are working with Baxter to help support increasing supplies, setting up temporary imports, and expediting consideration of any shelf-life extension requests.

In a letter earlier this week, Department of Health and Human Services Secretary Xavier Becerra told health care leaders that the department is “working tirelessly to mitigate the sterile solutions supply chain disruptions” and, beyond the current crisis, is also working to diversify the supply chain so it is less reliant on a single plant.

For now, though, “HHS is encouraging all providers and health systems, regardless of whether they have experienced a disruption in their supply, to take measures to conserve these critical products,” the letter read. Some hospitals have already reported giving patients Gatorade and Pedialyte to conserve IV fluid supplies.

In one bright spot in the current disruptions, fears that Hurricane Milton would disrupt another IV fluid manufacturing plant in Florida were not realized this week. B. Braun Medical’s manufacturing site in Daytona Beach was not seriously impacted by the storm, the company announced, and production resumed normally Friday. Prior to the storm, with the help of the federal government, B. Braun reportedly moved more than 60 truckloads of IV fluid inventory north of Florida for safekeeping. That inventory will be returned to the Daytona facility, according to reporting by the Associated Press.

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