State Association Urges Tariff Exemption on Medical Device Components

TRENTON, NJ—The New Jersey Business & Industry Association (NJBIA) recently submitted a letter to the U.S. Department of Commerce urging the Trump administration to exempt the medical device industry from overly broad tariffs on internationally sourced components that New Jersey manufacturers use to produce lifesaving equipment.
In its statement, NJBIA expressed support for the federal goal of bolstering domestic manufacturing capacity for critical medical products but cautioned against the use of broad, tariff-based measures that could unintentionally disrupt supply chains and weaken U.S. competitiveness.
“Manufacturing is the foundation of America’s innovation and resilience,” said Christopher Emigholz, NJBIA Chief Government Affairs Officer. “However, tariffs on essential inputs could raise costs, slow production, and undermine national security rather than strengthen it.”
Representing thousands of New Jersey employers, including hundreds of medical device and life sciences companies, NJBIA highlighted the state’s $57 billion manufacturing sector as a key pillar of national preparedness. The association emphasized that global supply chains remain essential for accessing specialized materials such as medical-grade polymers, sensors, and microelectronics used in U.S.-made devices.
To enhance domestic production capacity while maintaining supply chain stability, NJBIA outlined five policy recommendations:
- Avoid broad or indiscriminate tariffs on essential medical inputs.
- Prioritize incentives over penalties, including tax credits, grants, and R&D funding, in line with the new One Big Beautiful Bill and New Jersey’s Next New Jersey Manufacturing Tax Credit.
- Improve federal coordination across Commerce, HHS, and FDA to ensure regulatory clarity.
- Invest in infrastructure and logistics, particularly port modernization and transportation networks.
- Encourage strategic reshoring partnerships to strengthen domestic production without isolating global suppliers.
NJBIA concluded that balanced, incentive-driven policies—rather than restrictive tariffs—will best secure the nation’s medical manufacturing base.
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