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Will tariffs affect hearing aid prices?

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Edited

Just wondering if anyone has any insight on the topic of tariffs and hearing aids. I know many hearing aids are manufactured outside the US, including in some countries that were the hardest hit (like China and Vietnam), so I’m wondering what impact this will have on hearing aid prices.

Here are some affected countries which manufacture hearing aids:

  • China: 54%
  • Vietnam: 46%
  • Thailand: 36%
  • Singapore: 10%

I saw this article:

If tariffs go through, the cost of most medical devices will go up25

With the majority of devices manufactured outside the U.S., any increase in tariffs is likely to drive up health care costs

But, this was also shared with me: CROSS Customs Rulings Online Search System22

… which seems to suggest that hearing aids are exempt. Here’s a summary from Chat GPT (but I’d rather hear it from a human with expert knowledge on the topic):

Based on the analysis in ruling and related CBP guidance, hearing aids are treated as duty‐free (“exempt from tariffs”) when they are imported as complete, fully assembled devices that are specifically designed or adapted solely for the benefit of individuals with hearing loss. In practical terms, this means:

  • Complete Device Requirement: The device must be imported as a finished hearing aid—not merely as components or a repair kit.
  • Purpose & Design: It must be designed exclusively to compensate for a hearing impairment. In other words, if the device is marketed and configured solely for use by persons who are hearing impaired (as evidenced by its design, labeling, and usage instructions), then it qualifies.
  • Proper Classification: When such devices are properly classified under the applicable tariff heading (commonly HTS subheading 9021.40.0000 for hearing aids, which carries a zero‐rate of duty), they are exempt from tariffs at the time of importation.

Thus, exactly when a hearing aid meets these conditions—being a complete, purpose‐designed device for the hearing impaired and correctly classified under the tariff schedule—it is exempt from tariffs.

I realize it will be tempting for many people to vent here, but let’s please just stick to trying to address my question specifically so as to avoid this thread blowing up into a political flame war. If you want that, you can visit facebook or twitter, but this is a hearing aid forum :slight_smile:

22 people in this conversation26 min readJump to latest

On the basis that there’s likely to be retaliatory tariffs from the Eu towards the USA, then probably.

There’s a couple of points to consider, the origin of the supply chain, the dollar pricing of the supply chain and the destination of the product.

Given the trade balance in terms of the market: the US consumer is likely to be the biggest victim in this, especially given the Suzhou production facilities getting 50%+ tariffs and European 25% tariffs on final products.

The China/Eu route isn’t affected yet, the Eu/Eu isn’t affected and the Eu/Uk situation can’t happen because of the land border in Northern Ireland (plus the Good Friday agreement).

With anything like this, it always depends where the trade surplus is. Starkey will be laughing domestically, but for practically every other supplier, the import cost will be rising by 25-50%+. Where it will probably hit hardest is the Costco and discount end of the market who have been punting out European product. So, the poorest US customers will experience the biggest challenge.

Funnily enough I’ve got an A-level in economics, the phrase that’s always stood out from this area of study: ‘Nobody ever ‘wins’ in a trade war in the long term.’ The premise is eventually that the country practicing the economically isolationist policies just gets ‘frozen out’ from the international supply chains.

The application of exemptions ‘might help’ but could fall away if it gets nasty.

Edited

While the Chatbot seems to refer to custom duties for individuals entering the VS the same exemption appears to apply to wholesale imports (see below). However if all this remains unchanged under all those Executive Orders by the “very stable genius” remains to be seen imho.

"Importing hearing aids into the US typically incurs no import duties under certain conditions, specifically when they are classified as “specially designed or adapted for the use or benefit of the permanently or chronically physically or mentally handicapped”.

Here’s a more detailed explanation:

** Duty-Free Classification:*

Hearing aids are generally classified under Harmonized Tariff Schedule of the United States (HTS) subheading 9021.40.0000, which provides for hearing aids, excluding parts and accessories.

** Specialized Design/Adaptation:*

To qualify for duty-free treatment, the hearing aids must be “specially designed or adapted” for use by individuals with permanent or chronic physical or mental handicaps.

** Form ITA-362P:*

If the hearing aids meet the above criteria, importers need to file U.S. Department of Commerce form ITA-362P with the Customs port of entry."

@RobHooft said:

excluding parts and accessories.

This will have ramifications on the manufacturing cost which will be reflected in pricing, even if it has limited impact on the wholesale price.

At the end of the day folks, the US appears to be isolating itself from the rest of the world market, these tariffs have everything to do with the US trade deficit, and zero to do with what other countries charge! For as long as I can remember, manufacturing was outsourced to mainly Asia, many large corporations did so, because of cheap labour, and hence bigger profits, these policies had a severe detrimental effect on all western countries workers, we don’t have the skillset to manufacture these goods anymore! What Donald is actually achieving is alienating all US goods, folks around the world, will refuse to buy American :us: on a point of principle, and probably refuse to sell to the US, unless it’s at a highly inflated price… Meanwhile, China is waiting in the wings, to trade freely with anyone… Look at Tesla, 13% drop in worldwide sales since January, that isn’t sustainable! I think Elon, now realised, that politics and business doesn’t mix, the way he treated Federal employees was nothing short of disgusting, with no compassion whatsoever, these folks have, houses, mortgages, cars and families… This isn’t going to end well folks, and as usual, it is those who can least afford it, that will pay the price, or do without? If you have an insular market place, the US may have no trade deficit, simply because very few will be able to afford the tariff prices, but if no one is buying the US goods, who do you export too, if very few will buy those US goods, or do you just trade with yourself? If we want the best, the market dictates the price, certain countries will always be better at making goods that are far superior, it is the way it has always been, IMO, trying to manipulate the market, will not work… My 2 cents worth. Cheers Kev :wink:

Don’t panic! I think isolation can be useful to boost inner development. As Barack Obama said in 2015 - " Russia is isolated, and its economy is torn to shreds". Look at us today. We have found the strength, and we maintain the same standard of living.

But Dmitrii, in an ideal world, is that how you would choose to live? For instance, I am aware Russians love sport, being ostracised by the world, must be painful, for your sporting lovers… Hearing Aids, must be difficult to come by? Expensive maybe? And any other goods? But yes, Russia has done well out of an aggressive “WAR” with former friends and colleagues in Ukraine… I don’t blame the Russian-people, I do blame the Russian government for its obsessive thinking that anyone outside Russia is against them, we aren’t, we have little or no interest in Russia, and whom would even think of attacking Russia, the sheer size of the country, the volume of armed forces, conventional, nuclear & chemical weapons, is mind boggling… You do not poke a hornets nest with a stick, you leave it well alone! And yes, “Isolation” can be a wonderful thing, but for all our faults, we human beings are gregarious, living on your own is fine, but we get bored fairly quickly in our own company, we need friends & foes to stimulate us, we like to visit other countries, we appreciate other cultures, it’s okay to have a decent income, but is it worth having, if you can’t spend it on the things you love, or the places you want to see? Cheers Kev :wink:

I agree, the whole world has taken a wrong turn. An ideal world would be very different. Why fight when you can trade, exchange, and learn from each other? We need to protect nature - the climate is already changing. But this is all utopia, trying to fight against the established system is no longer possible.

I hope this response isn’t seen to be in anyway political but I would be thinking that this announcement will be subject to a series of negotiations and exemptions. Hopefully this concern does not materialise as these essential devices are so costly already.

In reply to @anon33641277

It’s going to affect the price of everything. Many economists belive that we are headed into a great big recession. Ask anyone how President Herbert Hoover fared after enacting the Smoot-Hawley Tariff Act. The result was the Great Depression. Those who ignore history are bound to repeat it.

I just pinged my old audi on the topic of tariff prices impact on hearing aid prices. Perhaps he’s heard some scuttlebutt from his reps at Phonak, Oticon, et al?

I’m not at all hopeful that this kind of lunacy will 1.) bring manufacturing jobs back to the USA, 2.) allow us to continue investing in higher growth industries that require a higher skill-set, 3.) give businesses, farmers, consumers or Wall St the confidence needed to INVEST as opposed to pull back and hover waiting for the shoe to drop.

I read an interesting article at The Guardian today by Martin Kettle2, and found that the sentence that really sums things up is: (Trump) glories in the way the world hangs on his every move, as the world must when its largest economy is controlled by a grudge-bearing manchild with guns who governs by decree.

The guardrails are off. Seatbelt fastened. Wild ride ensured.

Indeed. I want to note another issue. To develop any industry, you need not only managers but also people who do everyday work, including specialists. With a higher cost of living and higher risks and costs associated with studying (loans, being forced to work during studying—> less time and energy for adequate learning to be more qualified), there is a risk of having a problem with a lack of workers, especially specialists.

it will take a decade at least to build any manufacturing plant in the U.S… Last I heard, such plants require wood, steel, aluminum, electronics, computers etc etc in order to exist. All of those materials and goods just became much more expensive to acquire. Meanwhile the bottom’s falling out of the markets and there’s only uncertainty of the horizon. What company jumps up and builds new plants given these conditions?
My guess is that parts for hearing aids are manufactured in a variety of countries. Tarriffs will have an effect on pricing.

He promised to lower prices from day one. But he was also talking about tariffs. Anyone who remembers their school lessons should know that tariffs rais prices, so he was lying. Of course he had been convicted of multiple frauds and in his first term thousands of lies were documented. That means those who voted for him, voted for higher prices.

Not meaning to make this political.
But the decision to implement tariffs started because of politics.
Sometimes a bad person can do a few good things.
Perhaps Trump is doing a few good things.**

But when motivating factors are so diverse, it is hard to take a both sides on a right path.
And we as a nation should prefer to unite all views, rather than to fragment unity over them!

The reason Trump got elected can be summed up in two words Roy Cohn!
Not only has Trump been a lifelong student of Roy, but the majority of his voters, are simply ignorant of Cohn’s history, his influence on this country, nor even aware of the injustice so many experienced - as a result - such as victms of the McCarthy era caused by RC !

Unless, all Trump’s business contacts hustle to invest and build thousands of factories here, this will not end as it is hoped. We are losing prestige and respect. And possibly Trump will need to find a reason to invoke emergency powers to stay in office - such as a war!

On that - the good news is he has many options to choose between: Russia, Iran, Korea, and China.

To answer the OP’s question, if this is not reversed quickly prices will go up, and in addition new technology will be delayed.

One man’s lie is another’s religion!
The more it’s repeated the more it’s believed!

This is a “trade war”. I am glad that my country has declined to engage in such a war. I feel for the American people who will be hit hardest by these tariffs. Personally I think the most sensible thing countries can do when manufacturing declines is to concentrate on keeping manufacturing of essentials and value adding in order to improve exports. Using intellectual value is very important when manufacturing declines. This requires increasing educational opportunities for people. Will have to wait and see what happens to all prices throughout the world now as this will not just impact the USA. A recession in the USA will have a flow on effect in the rest of the world.

In reply to @RLGL

@RLGL said:

What I can’t understand is why people fall for the lies!

A mystery for everyone with brains, a very basic understanding of how global economics works and education. But with dismantling the latter in the US, Mr Trump certainly works hard on expanding his political base.

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