Premier has issued another report on tariffs and their impact on healthcare after updates following their original February report.
The report highlights the comprehensive tariff policy unveiled by President Trump imposing a “baseline 10 percent tariff on all imported goods, effective April 5.” Additionally, a 90-day pause on reciprocal tariffs was announced on April 9, but the universal 10 percent tariff rate will “apply to most countries and products” during that time. U.S. imports in China, however, still face up to a 245 percent tariff.
Tariffs prolong a “period of volatility and cost uncertainty” in the healthcare industry. Premier warns that complexity and cost pressures could result from the tariffs, “including for personal protective equipment, medical devices, pharmaceuticals, foodservice, and capital projects.” For example, “enteral feeding syringes have no current known manufacturing outside of China and are currently subject to a 245 percent tariff.” Approximately 75 percent of U.S.-marketed medical devices are “manufactured out of the country.” China plays an “integral role in manufacturing medical devices, pharmaceutical ingredients, and other technological components.”
Premier also offers three steps that healthcare leaders can take now to “help safeguard their supply chains and budgets.” First, they say to “call for supplier transparency” by asking suppliers for detailed data. Identifying vulnerabilities is also important to “assess risk and variability across your contracts.” Finally, they suggest exploring GPO alternatives.
Matt MacKenzie | Associate Editor
Matt is Associate Editor for Healthcare Purchasing News.
