Impact of Upcoming Tariffs on Healthcare Sourcing

USMCA-compliant goods receive a temporary exemption until April 2, 2025.

President Trump has temporarily exempted certain Mexican and Canadian goods from 25% tariffs under the USMCA until April 2, 2025. According to the Office of the U.S. Trade Representative, the exemption applies to USMCA-qualified products, including medical devices and pharmaceuticals.

While USMCA-compliant imports are temporarily exempt, U.S.-Mexico cross-border trucking firms report longer wait times, increased freight volume, and growing demand for USMCA qualification to avoid the 25% IEEPA tariffs. Shippers are also adjusting strategies, such as breaking down shipments to minimize duties, while customs brokers navigate new compliance challenges.

Health systems constructing new facilities have reported rising costs for construction materials sourced from Canada, further complicating budget planning.

Meanwhile, comprehensive 25% tariffs on all steel and aluminum imports are scheduled to begin March 12. Trump indicated further escalation may be forthcoming, stating over the weekend that tariffs could “go up as time goes by.”

In response to U.S. trade policies, Ontario’s government has imposed a 25% surcharge on electricity exports to the U.S., impacting 1.5 million homes and businesses in Minnesota, New York, and Michigan. Ontario Premier Doug Ford warned, “If the United States escalates, I will not hesitate to shut the electricity off completely.”

Healthcare executives face challenges estimating their exposure to increased costs from tariffs for their health system. There is no one-size-fits-all answer. Any health system can set up a 30-minute SRS training session on how leading health systems assess their exposure to tariffs and other risks, and the steps they take to mitigate risks proactively. Simply email SRS Support (support@supplyrisk.com) to schedule a time.

The following SRS reports can be tailored to the items you buy to assess tariff exposure for your health system:

• “Products by Country (Tariff Risk)” – choose any country to see which items you buy are manufactured there (in the Prevent dashboard).
• “Products Subject to Section 301 China Tariffs” – downloads current section 301 tariffs on healthcare item made in China (in the Prevent dashboard).
• “Products Sites and Risks” – lists manufacturing location for all items you buy from the supplier (in the Prevent dashboard after you drill down on a supplier).
• “Supplier Geopolitical Summary” – summarizes exposure for all countries (in the Respond dashboard).

If you have not yet tailored SRS for the items you buy, it’s easy to do so with an SRS subscription.

For more information, see:

Office of the United States Trade Representative, Sectoral Annexes

Supply Chain Dive, Tariffs create frenzy in cross-border trucking, March 10

NBC News, Live updates: China responds to Trump with tariffs on U.S. goods; Congress races toward shutdown deadline, March 10

AP News, Ontario slaps 25% tax increase on electricity exports to US in response to Trump’s trade war, March 10

Organiser, US President Donald Trump says tariffs on Mexico, Canada “could go up as time goes by”, March 10

Finance Yahoo, Trump tariffs live updates: Mexico’s Sheinbaum celebrates reprieve as Canada’s liberals pick Trudeau successor, March 10

Supply Risk Solutions, Trump’s Partial Tariff Exemptions Leave Majority of Canada-Mexico Duties in Place, March 7

BBC, Trump expands exemptions from Canada and Mexico tariffs, March 7

Supply Risk Solutions, U.S. Tariffs on Canada and Mexico Take Effect, March 4

Yahoo, Borderlands Mexico: Mapping supply chains key to surviving tariff wars, experts say, March 2

Supply Risk Solutions, U.S. Unveils New Tariff Plans, February 28

BBC, Trump says US will impose additional 10% tariff on China, February 27

CNBC, How Trump’s tariffs on Mexico and Canada will sweep across the U.S., state by state, February 25

Supply Risk Solutions, Trump Confirms Canada and Mexico Tariffs Will Take Effect on March 4, February 25

Supply Risk Solutions, Trump Proposes 25% Tariffs on Cars, Chips, Pharma Products, February 20

MedPage Today, Trump Plans to Impose Tariffs on Pharmaceuticals. Here’s What to Know., February 20

Supply Risk Solutions, China Counters U.S. Tariffs with Targeted Tariffs, Export Controls, and Investigations, February 4

BBC, US coal and gas among targets of China’s retaliatory tariffs, February 4

Reuters, Trump pauses tariffs on Mexico and Canada, but not China, February 3

Supply Risk Solutions, Trump Delays Tariffs on Mexico and Canada, February 3

Supply Risk Solutions, U.S. to Impose Tariffs on Key Trading Partners Feb. 1, February 1

Supply Risk Solutions, Trump’s Tariff Policies Spark Global Uncertainty, January 27

Supply Risk Solutions, Trump Proposes 25% Tariffs on Canada and Mexico Starting February 1, January 21

Supply Risk Solutions, Tariff Planning Requires Product Transparency, January 13

Supply Risk Solutions, U.S. Tariff Plans Bring Urgency to Knowing Product Manufacturing Locations, December 2

Supply Risk Solutions, Tariffs Push Manufacturers to Rethink Supply Chain Strategies, November 15

Supply Risk Solutions, Tariffs Spur Urgency to Understand Product Manufacturing Locations, November 11

Supply Risk Solutions, List the Products You Buy That Are Subject to China Import Tariffs, October 28

White & Case, United States Finalizes Section 301 Tariff Increases on Imports from China, September 17