President Donald Trump’s new 10% global tariff is adding another layer of uncertainty to hospital supply chains, prompting leaders to revisit sourcing strategies, reinforce pricing protections and reassess contingency plans for critical medical products.
The tariff was imposed less than 24 hours after the Supreme Court ruled Feb. 20 that the administration’s tariffs enacted under the International Emergency Economic Powers Act were unconstitutional. In a 6-3 decision, the court said the law does not grant presidents broad authority to impose tariffs during peacetime.
Within hours of the ruling, President Trump issued a temporary 10% global tariff under Section 122 of the Trade Act of 1974. The tariff is set to remain in effect through July 24, and the administration has signaled it may raise the rate to 15%.
The policy reversal has created another period of uncertainty for health systems and medical manufacturers already navigating a complex global supply chain. About 69% of U.S.-marketed medical devices are manufactured entirely outside the United States, and the pharmaceutical industry relies heavily on international production for many generic drug ingredients.
For some hospital supply chain leaders, the latest tariff shift reinforces the need for resilience rather than reactive changes.
“At this point, tariffs are simply one input among many that we evaluate,” said Don Barton, BSN, chief technical officer and director of supply chain management at Shelbyville, Ind.-based Major Health Partners. “This policy shift adds noise, but it doesn’t fundamentally alter our strategy.”
Mr. Barton said his organization already prioritizes diversified manufacturing footprints, dual-source strategies and contract structures that limit unilateral price increases. The system also regularly evaluates safety stock levels, substitution pathways for clinically equivalent products and exposure among physician-preference items.
Other health systems said the moment calls for reinforcing vendor accountability while the tariff environment remains fluid.
Tracy Cleveland, vice president of supply chain at Traverse City, Mich.-based Munson Healthcare, described the current moment as largely a “wait and see” period as the exact tariff structure and timing remain uncertain.
“The important thing for procurement and accounts payable teams is to hold suppliers to the existing pricing agreements,” Mr. Cleveland said.
Some organizations are relying more heavily on group purchasing organizations to limit financial exposure to potential price increases.
Michael Alfaro, director of materials management at Ventura, Calif.-based Community Memorial Healthcare, said his team is streamlining sourcing through its GPO to anchor spending in stable, pre-negotiated contracts.
“By ensuring our pharmaceuticals and device spend is tied to these agreements, we are reducing the financial risk and operational uncertainty inherent in the current trade environment,” he said.
For pediatric hospitals, tariff volatility can carry additional challenges because many devices and drug formulations are designed specifically for children and produced in smaller volumes.
Edith Perez, executive director of supply chain central services at Miami-based Nicklaus Children’s Health System, said the new tariff adds “another layer of volatility” for pediatric supply chains.
“We don’t have the same product substitution flexibility adults do,” Ms. Perez said. “Many devices and formulations are pediatric-specific, lower volume and already carry higher unit costs.”
In response, her team is leaning more heavily on forward purchasing strategies, strengthening vendor contract language around price protection and transparency and testing secondary sourcing options for essential medications and devices.
“Those steps help ensure we’re not caught flat-footed in 2026,” she said.
Other systems said maintaining strong supplier partnerships remains the most important strategy during periods of policy uncertainty.
Luke Martin, administrative director of supply chain management at San Angelo, Texas-based Shannon Health, said his organization continues to prioritize strategic relationships with suppliers to maintain competitive pricing and favorable transportation terms.
“Keeping this strategy front of mind allows us to partner with our suppliers to ensure value to our organization and the patients we serve,” he said.
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