A last-minute reprieve in a brewing trade war between Canada and the U.S. gives healthcare organizations a small window of breathing room but shouldn’t be taken as a sign to relax and return to the status quo.

All players in the healthcare supply chain must prepare for new ground rules as our neighbour to the south and largest trading partner aims to reshape its economic relationship with Canada under U.S. President Donald Trump.

Tariffs of 25 per cent on Canadian goods that were to be imposed on February 4, 2025 have been paused for 30 days, but the threat remains. With a strong mandate and four years in power, the current U.S. administration appears committed to overhauling long-standing agreements that govern the flow of goods between our countries.

The health sector must view this issue as a top priority that isn’t going to go away any time soon. We need to work together closely to better understand the potential impacts of rising tariffs, increase our combined resilience and strategically insulate our operations and supply chain from shifting trade policies in the months ahead.

Economists are warning that tariffs imposed by the U.S. and similar retaliatory tariffs by Canada would have significant impacts – potentially triggering a recession, cutting billions of dollars in economic activity and eliminating hundreds of thousands of jobs across various industries.

The health sector – which relies heavily on an integrated economy on both sides of the border would undoubtedly also feel the toll of tariffs and the economic uncertainty surrounding them. While primarily targeting everyday consumer goods like American alcohol, food products, and plastics, the planned U.S. tariffs may have downstream effects on healthcare supplies, including items such as soaps, mattresses, refrigerators, and tools.

There are too many unknowns at this stage about what specific products would be included in the tariffs both coming in and going out of Canada to fully quantify the impacts this could have on patient care. But what we do know is that any avoidable disruption that interferes with Canada’s supply chain to medicine and medical supplies or limits access to care for patients is a risk we should not take.

As Canada’s group contracting provider for more than 2,000 hospitals and healthcare facilities, HealthPRO Canada is committed to protecting and strengthening the Canadian healthcare supply chain and ensuring resilience amid trade uncertainties.

We are working with suppliers across our national network to identify if there are any at-risk products or supply chain vulnerabilities. Suppliers are being encouraged to explore tariff-exempt options within their global network and implement protective allocation measures as appropriate to ensure equitable distribution of critical products.

Most of our national contracts are structured as multi-source agreements with three to five awarded suppliers per contract. This approach enhances supply chain resilience and provides members with flexibility during disruptions.

Importantly, it will be critical for all partners across our healthcare supply chain to increase collaboration to protect Canadians from the growing threat of trade disruptions. Creating a truly resilient supply chain isn’t something any single organization can do on its own.

Last summer, HealthPRO Canada launched a Healthcare Supply Chain Playbook with practical strategies for healthcare organizations to use to mitigate disruptions caused by a range of factors, including natural disasters linked to climate change, economic crises, geopolitical conflicts and trade issues – such as the current tariff dispute between Canada and the U.S.

One of the central pillars in the Playbook is a call for local, domestic and international organizations to rethink how they work together. We need to increase collaboration and share data with each other more freely to mitigate supply chain risks and enable safe, high-quality, uninterrupted patient care.

Fortunately, Canada’s health sector is adopting this approach to collectively prepare for the threat of an impending trade war. However, while vigilance is crucial, we must resist the urge to make drastic shifts overnight. Given the deep interconnectedness of our supply chain, abrupt changes could create unintended consequences that disrupt access to critical medical products and impact patient care. Instead, we must take a measured approach—proactively assessing risks, diversifying sources where feasible, and allowing calmer heads to prevail.

HealthPRO Canada is collaborating with Medtech Canada and supply chain organizations to advocate for policies that strengthen Canada’s healthcare manufacturing sector and protect access to essential medical products.

A key focus of our shared advocacy is ensuring that critical medical supplies, devices, and medications are exempt from Canada’s response to potential U.S. tariffs. By working closely with government partners, we are taking proactive steps to safeguard Canada’s healthcare supply chain and keep vital products flowing.

Together, we are standing up for policies that protect patient care, ensuring healthcare facilities have the supplies they need—no matter the trade challenges ahead. 

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