Tariff turbulence: Navigating US trade shifts in the medtech supply chain

The US has been at the centre of a shift in global trade dynamics these last few weeks, resulting from a rise in geopolitical and economic uncertainty. We’ve seen recent tariff policy changes creating an increasingly volatile environment for exporters and importers alike, particularly those in the medical device and IVD sectors.

Although the US has historically favoured free-market trade, recent moves have suggested a move back towards protectionist policies. The reintroduction and consideration of tariffs on strategic goods – including medical and diagnostic equipment – reflect a political strategy of favouring domestic production over foreign supply chains.

Localised supply chains de-risking volatility

In the face of this uncertainty, localised and diversified supply chains are proving to be more valuable than simply chasing the lowest-cost offshore manufacturing. The fragile nature of extended global supply chains was evidenced during the COVID-19 pandemic and continues to be tested by ongoing geopolitical movements, shipping disruptions, and variable trade policies.

While the USMCA (United States–Mexico–Canada Agreement) continues to offer a near-shore option for Canadian and Mexican manufacturing operations looking to access the US market tariff-free, it’s clear that even these arrangements are not to be taken for granted. Recently, President Trump temporarily reinstated a 25% tariff on Mexican and Canadian imports before reverting back to the original USMCA terms. Although short-lived, it certainly raises concerns about the reliability of trade agreements and highlighted the need for proactive supply continuity planning.

Another notable change is the recent removal of the ‘de minimis’ threshold, particularly aimed at shipments entering the US from China. This change means fewer goods qualify for tariff-free entry, increasing landed costs for many low-value shipments — a direct hit to companies relying on drop-shipping models. While this change is primarily aimed at China, its ripple effect is causing global supply chain reviews and shifting sourcing strategies.

For UK companies shipping into the US, especially in regulated sectors like medical diagnostics, these evolving thresholds and tariff policies could affect both cost-predictability and operational reliability. Tied with the recent news about LDT uncertainty and FDA department cuts, it means entering into the US healthcare industry is incredibly complex.

As a business, we take a proactive approach to diversification and risk management across our operations. Our multi-region framework ensures compliance with local regulations while supporting agile, resilient supply chains. With localised fulfilment, logistics, and lab services, we consolidate and manage networks for our clients, ensuring consistent quality and service continuity. This strategy reduces lead times, lab processing times, and logistics bottlenecks, and shields our clients from the financial and operational risks associated with sudden tariff changes or political shocks.

What can be done:

1) Evaluate your supply chain for gaps and weaknesses

- Use cost-benefit analysis to weigh alternative sourcing or manufacturing options.
- Apply SWOT analysis to each supplier and logistics partner.
- Implement supplier risk management frameworks, considering supplier financial health, political stability in the country, and compliance history.
- Use geopolitical risk scoring tools and services to stay ahead of potential regulatory or political disruptions.

2. Understand the HS codes where tariffs do not apply

- Review your product catalogue and map each item to its HS code.
- Identify whether your products qualify under special exemptions (e.g., critical medical devices).

3. Keep abreast of changes and inform customers

- Subscribe to updates from trade authorities, trade groups, and regulatory bodies.
- Develop internal dashboards or alerts for tracking policy changes and global trade news.
- Communicate proactively with customers regarding potential delays, price fluctuations, or changes in delivery terms.

4. Ensure proper customs documentation and declarations

- Maintain updated documentation for every shipment, including invoices, packing details, and certificates of origin.
- Ensure that customs declarations are accurate and compliant with the latest rules.
- Utilise digital customs software or partner with experienced brokers to automate and validate customs paperwork.

5. Consider strategic outsourcing for supply chain management

- Consider outsourcing your operations to partners who can manage your supply chain and bring supply chain diversification, without the heavy resource requirements on your own operations teams.
- Outsourcing can help reduce the internal resource burden while gaining access to established supplier networks, risk mitigation strategies, and real-time monitoring tools.

About the author

Emma Stone is Hurdle's VP of operations. Stone has 18 years of supply chain, operations, and procurement experience with 13 years in Med Dev and IVD industries. Her focus at Hurdle is developing and implementing operational strategy across geographies that delivers client and consumer value.