Tariffs Deepen Pressure on U.S. Healthcare Supply Chains

Hospitals face rising costs and supply delays as tariffs disrupt access to essential imports.

Shifting U.S. trade policies—including new tariffs on medical devices and supplies and the potential extension to pharmaceuticals—are fueling uncertainty for U.S. hospitals, complicating procurement and budgeting decisions. In a report released last Wednesday, The American Hospital Association (AHA) warned that these trade barriers could disrupt patient care, exacerbate shortages, and “significantly raise costs for hospitals”.

According to AHA analysis of Census Bureau data, nearly 70% of medical devices sold in the U.S. are produced overseas, and in 2024 alone, the nation imported more than $75 billion in medical equipment and supplies. These imports include essential, high-volume items such as syringes, needles, IV saline bags, and blood pressure cuffs, along with advanced surgical tools and diagnostic technologies. China remains a dominant supplier of protective gear: in 2023, it produced the majority of N95 respirators, one-third of disposable face masks, two-thirds of non-disposable masks, and 94% of plastic gloves used in healthcare settings.

The AHA also flagged pharmaceutical inputs as a critical point of vulnerability. Nearly 30% of active pharmaceutical ingredients (APIs) used in the U.S. are sourced from China, and over 90% of generic sterile injectable drugs—including chemotherapy agents and antibiotics—rely on components from China or India, according to a 2023 estimate from the Department of Health and Human Services. Healthcare leaders caution that even brief disruptions in access to these ingredients could compromise patient care and drug availability. They add that further tariff increases or prolonged supply chain delays may rapidly drain inventories and place additional financial strain on hospitals—especially for rural or resource-limited providers.

In addition to cost increases, some suppliers are delaying shipments from tariffed countries in the hope that tariffs will decrease. Port of Los Angeles data shows cargo volumes fell more than 35% in the first week of May 2025 compared to the same week in 2024, a decline experts largely attribute to escalating trade tensions. Gene Seroka, Port of Los Angeles Executive Director, stated “20% of the normally scheduled vessel arrivals for the month of May have been canceled”.

With import disruptions mounting, healthcare systems face growing pressure to adjust budgets and sourcing strategies in real time. Any health system can tailor SRS to their suppliers and items in order to assess exposure to tariffs and other risks, gain supply chain transparency, and move from reactive to proactive risk mitigation. Contact SRS Support (support@supplyrisk.com).

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

• “Products Tariffs – Special Report” – details suppliers sourcing from tariffed countries (in the Prevent dashboard).
• “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:

Axios, Hospitals begin to grapple with tariff fallout, May 1

Healthcare Dive, AHA sounds the alarm on rising hospital costs, May 1

American Hospital Association, The Cost of Caring: Challenges Facing America’s Hospitals in 2025, April 2025

AInvest, Port of Los Angeles Cargo Decline Signals Shift in Global Trade Dynamics, May 2

Fortune, Trump’s trade war has already sparked a massive cancellation of shipments from China to the U.S. , April 25

Supply Risk Solutions, U.S. Tariffs Drives “Foreign Trade Zone” Surge, April 30

Supply Risk Solutions, U.S. Launches Tariff Probes Into Chip and Pharmaceutical Imports, April 17

Supply Risk Solutions, Supply Chains Upended by Historic Tariffs, April 3

Supply Risk Solutions, Manufacturers Plan to Pass Tariff Costs on to Their Customers, April 1

Association of Supply Chain Management, Relentless Tariffs and a Supply Chain Crossroads, March 28

Manufacturing.Net, Survey Uncovers Tariff Impact on Manufacturers and Their Adjustment Strategies, March 12

Supply Risk Solutions, Impact of Upcoming Tariffs on Healthcare Sourcing, March 11

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

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

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

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

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

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