Skip to content
  • About
  • Contact
  • Contribute
  • Book
  • Careers
  • Podcast
  • Recommended
  • Speaking
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking

How trade wars could destroy the U.S. health care system

Arthur Lazarus, MD, MBA
Policy
April 6, 2025
Share
Tweet
Share

The term “core competency” was coined by management experts C.K. Prahalad and Gary Hamel in their influential 1990 article titled “The core competence of the corporation,” published in the Harvard Business Review. Prahalad and Hamel defined core competencies as the unique capabilities or advantages that a company possesses, which are critical to its ability to achieve competitive advantage and long-term success. These competencies are not just about the skills or technologies themselves but are the collective learning and coordination across various business units that allow a company to deliver unique value to customers.

On average, a company typically possesses between three to five core competencies. For example, Sony’s core competency in imaging and sensing technologies has been crucial in the development of high-quality camera sensors used in smartphones and professional cameras. Apple’s core competency in design and user experience has been central to the success of products like the iPhone and Apple Watch. Honda’s expertise in engine design and manufacturing has enabled it to excel not only in the automotive industry but also in producing motorcycles and power equipment. These competencies are integral to the company’s ability to innovate and adapt, providing a sustainable competitive edge in the marketplace.

The concept of “core competency” is generally applied to a company or business—not to a country. But let’s think in broader terms. What about the United States? America’s core competencies are often highlighted by its significant strengths in various sectors, which contribute to its global influence and leadership. One of the primary areas of excellence is innovation and technology. The United States is home to leading technology companies and research institutions that drive advancements in fields such as information technology, biotechnology, and aerospace. This innovation is supported by a robust ecosystem of entrepreneurship and business, characterized by a strong entrepreneurial culture and a legal and financial system that encourages innovation and development.

Higher education and research are also pivotal components of America’s core competencies. American universities are renowned for their quality of education and research output, attracting students and scholars from around the world. This educational prowess feeds into the country’s ability to innovate and adapt, further bolstering its technological advancements. Additionally, the U.S. exerts significant cultural influence through its entertainment industry, including film, music, and television, which shapes trends and popular culture globally.

The United States also maintains a formidable military power, with one of the most advanced and powerful military forces in the world, providing strategic influence and defense capabilities. Economically, the U.S. benefits from a highly diversified economy that includes a wide range of industries from agriculture and manufacturing to services and technology. Rich in natural resources such as oil, natural gas, minerals, and agricultural land, the U.S. leverages these assets to strengthen its economic position. Furthermore, as a leading global power, the U.S. plays a crucial role in international diplomacy, trade, and governance, influencing global policies and agreements.

However, when it comes to health care, the United States faces significant challenges that prevent it from being universally recognized as having a core competency in this area. While the U.S. is a leader in medical research, innovation, and technology, the health care system as a whole is marked by critical issues. Access and coverage remain problematic, as the system does not provide universal coverage, leaving many Americans uninsured or underinsured and limiting access to necessary health care services.

The cost of health care in the U.S. is among the highest in the world, yet health outcomes do not always reflect the level of spending, indicating systemic inefficiencies. Compared to other developed nations, the U.S. often ranks lower on key health indicators such as life expectancy and infant mortality. Moreover, the health care system is highly complex and fragmented, with a mix of public and private payers and providers that can lead to disparities in care. Significant inequities in health outcomes and access to care based on socioeconomic status, race, and geography further highlight the challenges within the system.

So, while the United States excels in certain aspects of health care, such as cutting-edge medical research and the development of new treatments and technologies, system-wide issues hinder the recognition of health care as a core competency on a broad scale.

My question is: What aspects of Trump’s trade wars with other nations will improve our broken health care system? In the long run—and I stress the long run—tariffs may bolster the economy. But that still leaves most other core competencies untouched—ones that could use a proverbial shot in the arm. As for health care, which I consider mission critical, it’s not even on Trump’s radar. Not only that, but tariffs will not repair broken health systems. They will only make them worse.

Tariffs will hurt the U.S. health care system by increasing the cost of imported medical supplies, equipment, and pharmaceuticals. Many of these products are sourced from global supply chains, and higher tariffs could lead to increased costs for health care providers, which may be passed on to patients in the form of higher health care expenses. Furthermore, tariffs will cause disruptions in the availability of essential medical products.

Tariffs could conceivably incentivize domestic production of medical goods, potentially leading to a more robust local manufacturing sector. This could enhance supply chain resilience and reduce dependency on foreign goods and products. However, the transition to increased domestic production will take years and, in the interim, could result in unsustainable supply shortages or increased costs.

The U.S. health care system is on the brink of collapse. Trump’s dangerous domestic policies and unfathomable purge of federal health care workers, coupled with unqualified hires in leadership positions, have pushed it there. Now he wants tariffs imposed on our trading partners. I’m less concerned about a trade war than I am about the extinction of health care as we know it.

Arthur Lazarus is a former Doximity Fellow, a member of the editorial board of the American Association for Physician Leadership, and an adjunct professor of psychiatry at the Lewis Katz School of Medicine at Temple University in Philadelphia, PA. He is the author of several books on narrative medicine, including Medicine on Fire: A Narrative Travelogue and Story Treasures: Medical Essays and Insights in the Narrative Tradition.

ADVERTISEMENT

Prev

How doctors can regain trust in the age of misinformation

April 6, 2025 Kevin 1
…
Next

How America became overmedicated—and what we can do about it

April 6, 2025 Kevin 1
…

Tagged as: Public Health & Policy

Post navigation

< Previous Post
How doctors can regain trust in the age of misinformation
Next Post >
How America became overmedicated—and what we can do about it

ADVERTISEMENT

More by Arthur Lazarus, MD, MBA

  • Physician attrition rates rise: the hidden crisis in health care

    Arthur Lazarus, MD, MBA
  • “The meds made me do it”: Unpacking the Nick Reiner tragedy

    Arthur Lazarus, MD, MBA
  • Direct primary care vs psychotherapy models: Why they aren’t interchangeable

    Arthur Lazarus, MD, MBA

Related Posts

  • Clinicians unite for health care reform

    Leslie Gregory, PA-C
  • Global aspirations for value-based health care

    Paul Pender, MD
  • Fostering health care innovation through federal policy: a case for direct primary care

    Christopher Habig, MBA
  • States have the power to influence health care

    Ruhi Saldanha
  • Why is our health care system going down the drain and no one seems to care?

    Michele Luckenbaugh
  • Melting the iron triangle: Prioritizing health equity in dynamic, innovative health care landscapes

    Nina Cloven, MHA

More in Policy

  • Student loan cuts for health professionals

    Naa Asheley Ashitey
  • Why lab monkey escapes demand transparency

    Mikalah Singer, JD
  • The political selectivity of medical freedom: a double standard

    Arthur Lazarus, MD, MBA
  • Understanding alternative drug funding programs

    Martha Rosenberg
  • The impact of policy cuts on ableism in health care

    Ashna Shome, MD
  • Accountable care cooperatives: a community-owned health care fix

    David K. Cundiff, MD
  • Most Popular

  • Past Week

    • Why patient trust in physicians is declining

      Mansi Kotwal, MD, MPH | Physician
    • Why doctors struggle with treating friends and family

      Rebecca Margolis, DO and Alyson Axelrod, DO | Physician
    • Why insurance must cover home blood pressure monitors

      Soneesh Kothagundla | Conditions
    • Is tramadol really ineffective and risky?

      John A. Bumpus, PhD | Meds
    • When racism findings challenge institutional narratives

      Anonymous | Physician
    • 5 things health care must stop doing to improve physician well-being

      Christie Mulholland, MD | Physician
  • Past 6 Months

    • Why patient trust in physicians is declining

      Mansi Kotwal, MD, MPH | Physician
    • The blind men and the elephant: a parable for modern pain management

      Richard A. Lawhern, PhD | Conditions
    • Is primary care becoming a triage station?

      J. Leonard Lichtenfeld, MD | Physician
    • Psychiatrists are physicians: a key distinction

      Farid Sabet-Sharghi, MD | Physician
    • Why feeling unlike yourself is a sign of physician emotional overload

      Stephanie Wellington, MD | Physician
    • The loss of community pharmacy expertise

      Muhammad Abdullah Khan | Conditions
  • Recent Posts

    • The Dr. Google debate: Building a doctor-patient partnership

      Santina Wheat, MD, MPH | Physician
    • Why home-based care fails without integrated medication and nutrition

      Gerald Kuo | Conditions
    • Psychedelic-assisted therapy: science, safety, and regulation

      Muhamad Aly Rifai, MD | Meds
    • Physician coaching: a path to sustainable medicine

      Ben Reinking, MD | Physician
    • Methodological errors in Cochrane reviews of anticoagulation therapy

      David K. Cundiff, MD | Conditions
    • Why we deny trauma and blame survivors

      Peggy A. Rothbaum, PhD | Conditions

Subscribe to KevinMD and never miss a story!

Get free updates delivered free to your inbox.


Find jobs at
Careers by KevinMD.com

Search thousands of physician, PA, NP, and CRNA jobs now.

Learn more

View 5 Comments >

Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

Social

  • Like on Facebook
  • Follow on Twitter
  • Connect on Linkedin
  • Subscribe on Youtube
  • Instagram

ADVERTISEMENT

ADVERTISEMENT

  • Most Popular

  • Past Week

    • Why patient trust in physicians is declining

      Mansi Kotwal, MD, MPH | Physician
    • Why doctors struggle with treating friends and family

      Rebecca Margolis, DO and Alyson Axelrod, DO | Physician
    • Why insurance must cover home blood pressure monitors

      Soneesh Kothagundla | Conditions
    • Is tramadol really ineffective and risky?

      John A. Bumpus, PhD | Meds
    • When racism findings challenge institutional narratives

      Anonymous | Physician
    • 5 things health care must stop doing to improve physician well-being

      Christie Mulholland, MD | Physician
  • Past 6 Months

    • Why patient trust in physicians is declining

      Mansi Kotwal, MD, MPH | Physician
    • The blind men and the elephant: a parable for modern pain management

      Richard A. Lawhern, PhD | Conditions
    • Is primary care becoming a triage station?

      J. Leonard Lichtenfeld, MD | Physician
    • Psychiatrists are physicians: a key distinction

      Farid Sabet-Sharghi, MD | Physician
    • Why feeling unlike yourself is a sign of physician emotional overload

      Stephanie Wellington, MD | Physician
    • The loss of community pharmacy expertise

      Muhammad Abdullah Khan | Conditions
  • Recent Posts

    • The Dr. Google debate: Building a doctor-patient partnership

      Santina Wheat, MD, MPH | Physician
    • Why home-based care fails without integrated medication and nutrition

      Gerald Kuo | Conditions
    • Psychedelic-assisted therapy: science, safety, and regulation

      Muhamad Aly Rifai, MD | Meds
    • Physician coaching: a path to sustainable medicine

      Ben Reinking, MD | Physician
    • Methodological errors in Cochrane reviews of anticoagulation therapy

      David K. Cundiff, MD | Conditions
    • Why we deny trauma and blame survivors

      Peggy A. Rothbaum, PhD | Conditions

MedPage Today Professional

An Everyday Health Property Medpage Today
  • Terms of Use | Disclaimer
  • Privacy Policy
  • DMCA Policy
All Content © KevinMD, LLC
Site by Outthink Group

How trade wars could destroy the U.S. health care system
5 comments

Comments are moderated before they are published. Please read the comment policy.

Loading Comments...