The US Department of Commerce has opened an investigation to assess the effects of national security in relation to the import of medical devices and other health care equipment, which led to a decline in the prices of Medtech shares on September 25.
Investigations in Section 232 in Trump considered the effects of national security through a large number of commodities, including steel, cars and pharmaceutical products. The definitions were largely the result of such reviews this year.
The prominent for those in the medical devices and relevant industries within the scope of the review is that the US Department of Commerce (DOC) states that the comments gained from the notice section 232 published in the Federal Registry on September 26 will direct its thinking about whether the additional measures, including tariffs or quotas are necessary to “protect national security”.
The start of the investigation is the dismay of the investors. The price of stocks in Gealthcare and BecTon Dickinson fell on September 25 by more than 4 % to $ 71.50 and $ 180.59, respectively, while intuitive surgery also witnessed decreases.
The document probe seeks to suspend during a 21 -day response window on the effects of national security to import medical devices and equipment, medical consumer materials, and personal protection equipment (PPE), according to Section 232 notice.
Julia Kharsonski, Deputy Assistant Secretary of the Secretary for Strategic Trade, is looking to investigate observations about a group of factors surrounding the above elements during the 21 days of publishing the notification in the Federal Registry.
DOC areas in particular include the possibility of export restrictions by foreign countries, including the ability of foreign countries to have a weapon of control over goods supplies, the useless remedy for import, and the impact of foreign government support and predatory trade practices on the competitiveness of the commodity concerned.
Commenting on the investigation, the Advamed Medical Technology Association struck an optimistic tone with caution.
“We look forward to continuing our work with the administration, including by achieving DOC, to enhance our already unique American industry,” said CEO of Advamed Scott Whitaker.
“We believe that this process will enhance the fact that the manufacture of Medtech of the United States is strong and that low definitions will lead to increased manufacturing and job growth in the United States, which means increasing access to life rescue technologies and reducing costs to American hospitals and patients.”
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