By  David Hewitt, Regional Vice President of Sales

There’s been a lot of confusion—and a fair amount of concern—around the new wave of tariffs introduced this year. The situation is evolving rapidly, and it’s clear that healthcare leaders can’t afford to tune it out. Tariffs may seem like a foreign policy tool, but the implications are landing squarely on hospital docks, in pharmacy inventories, and in your next vendor invoice.

The recent Advancing Health podcast from the American Hospital Association (AHA), titled Tariffs, Trade and the Health Care Supply Chain, offers a timely perspective. It doesn’t oversimplify the topic—and it doesn’t pretend the path forward is easy. But it does clarify how we got here and what’s likely to come next.

The Bigger Picture: What’s Actually Happening?

Trade expert Brian Pomper explains that the Administration has used an aggressive interpretation of the International Emergency Economic Powers Act (IEEPA) to impose a 10% tariff on every country with higher tariffs on 57 countries, currently paused for 90 days while negotiations continue. These tariffs went into effect early April and, unless delayed further, could re-escalate in July.

On top of that, the Administration has invoked Section 232 investigations, which allow tariffs to be applied for national security reasons. These have already hit steel, aluminum, and autos, and are now expanding into pharmaceuticals, semiconductors, copper, and aerospace.

Here’s the problem: these actions are sweeping, fast-moving, and often executed without stakeholder input. As Pomper puts it:

“You now have a president who has used IEEPA to impose tariffs on every country, every product, effectively forever.”

And while there’s some early talk of trade agreements (a limited “scoping” deal with the UK was mentioned), nothing substantive has yet materialized.

Why This Matters to Hospitals

Akin Demehin of the AHA brought the healthcare implications into focus. Hospitals, he emphasized, rely on a globally sourced supply chain, even for goods manufactured domestically:

“Even those medical goods and devices that are manufactured here in the U.S. often draw in content from abroad… An infusion pump might have parts from 20 or more countries.”

This kind of interdependence is invisible—until it breaks. And tariffs don’t need to be applied to final goods to cause problems. A tariff on a key component upstream (plastics, aluminum, semiconductors) can disrupt availability, create shortages, or spike prices in unpredictable ways. We’ve already seen this with certain cancer drugs and cardiovascular medicines, many of which rely on active ingredients manufactured in China or India.

And unlike other industries, hospitals can’t simply raise prices to offset these costs. As Demehin notes:

“The way that hospitals and health systems are reimbursed means it’s really our members that bear the costs of tariffs.”

That makes every price increase, sourcing change, or delay, a direct hit to margins—and by extension, to care access and quality.

What Comes Next?

So what can hospitals do? The AHA is actively advocating for exemptions for pharmaceuticals and medical devices and has engaged the Administration and Regulators. But as Pomper explained, even those exemptions are uncertain:

“My expectation is that the American economy is going to struggle under the weight of all these tariffs… I think we’ll see some kind of exclusion process return. But it’s not guaranteed.”

In the meantime, hospital leaders are encouraged to raise their voices, share stories, and quantify the impact—whether it’s delayed shipments, surprise price hikes, or non-compliant tax charges.

What We’re Seeing at SpendMend

At SpendMend, we’re not trade lawyers—but we do see how these global pressures show up in the details such as: unexplained cost increases on vendor invoices, shrinking rebate returns, new tax burdens, and missed credits on expensive devices.

Here’s where we naturally help defend against the impact of tariffs:

• Invoice Review & Purchased Services Audits: We help hospitals catch cost increases buried in line-item invoice data—especially in non-PO spend categories where rate validation is weakest.
• Rebate Optimization: If pricing changes alter rebate thresholds or payment terms, we flag it. We help hospitals monitor, manage, and maximize every dollar they’re owed—something that’s especially critical in volatile conditions.
• Sales & Use Tax Audits: New import classifications or sourcing changes may trigger incorrect tax charges. We help hospitals recover those overpayments and stay compliant across multiple jurisdictions.
• Medical Device Warranty Credits: If tariffs raise the cost of implanted devices, it becomes even more important not to miss eligible warranty credits. Our compliance tools help ensure those dollars come back to the hospital.
• Equipment Resale (Mazree): With capital budgets tightening, finding value in surplus or underused equipment becomes vital. Resale and redeployment offer relief from new equipment costs—particularly as imports get pricier.

Tariffs are shaping up to be one of the more unpredictable operational challenges of 2025. They weren’t in your budget. They weren’t on your strategic plan. But they’re already showing up in your cost structure.

The AHA podcast is a good resource if you’re looking to get grounded in the legal and policy context. I’d encourage every CFO, supply chain leader, and compliance director to give it a listen:

Tariffs, Trade and the Health Care Supply Chain

And as the ripple effects continue, know that the right data, controls, and partners can make a meaningful difference. Defense starts with visibility.