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Tariffs and cargo theft are impacting healthcare supply chains
Tariff impacts on medical devices and equipment
Over 700 categories of goods were added to the list of U.S. imports subject to the 50% steel and aluminum tariffs as of August 18, 2025. The expansion surprised companies as it was announced late on a Friday, went into effect that following Monday, and applies even to products that were already in transit.
This could affect products with something as small as an aluminum clasp on them or that use aluminum in their packaging. Companies need to determine not only what percent of the metal their product contains, but also where it originated and where it was smelted and cast. With an estimated 40% to 75% of medical devices manufactured outside of the United States, companies are advised to work closely with their customs broker to make sure they are in compliance.
Companies should also be aware that the 50% tariffs on steel, aluminum, and copper content in medical devices and equipment stack on top of other applicable tariffs.
Mexico, for example, is a major hub of medical device manufacturing and the largest supplier to the United States. Imports from Mexico continue to be subject to a 25% U.S. tariff. This applies to items such as hearing aids, insulin pumps, and pacemakers, unless the importer has them certified under the United States-Mexico-Canada Free Trade Agreement (USMCA). Prior to the U.S. administration imposing new tariffs this year, many companies had never certified their medical devices or equipment under USMCA because duties were zero or insignificant.
C.H. Robinson can advise on USMCA certification, help companies use Free Trade Zones or bonded warehouses to defer duties, and optimize healthcare supply chains to offset tariff costs.
Potential tariffs coming for pharmaceuticals
The possibility of new tariffs on pharmaceuticals is creating uncertainty for the healthcare industry. A large portion of the pharmaceutical Industry has been covered by the 1994 World Trade Organization (WTO) agreement that eliminated duties on many finished pharmaceutical products as well as the substances used to produce them. The United States was one of a select group of countries to participate in this agreement to keep medication affordable.
The current U.S. administration is exploring pharmaceutical-specific tariffs that would override the WTO agreement, with the goal of bringing pharmaceutical manufacturing back to the United States. The Department of Commerce is investigating U.S. reliance on foreign suppliers for critical drug components and finished products. While the scope and timing are unknown, the potential Section 232 tariffs could have far-reaching impacts on everything from patient access to medications to insurance costs to supply-chain complexities.
In the meantime, many pharmaceutical products are exempt from the U.S. reciprocal tariffs that broadly apply to all imports from a given country. The recently announced U.S. trade agreement with the European Union (EU), though not officially enacted, appears to carve out some tariff limitations for generic drugs. The United States imported $168 billion in finished and unfinished pharma products in 2024, with the majority of these imports, $127 billion, coming from the EU.
While it’s unknown how high a Section 232 tariff on pharma might be, the framework for the EU deal says the United States commits to keeping the tariff on imported generic drugs, their ingredients, and their precursors at the Most Favored Nation rate or 15%.
Nearly half the generic drugs for U.S. prescriptions are made in India. A new trade deal with India is still being negotiated, and it remains to be seen how pharmaceuticals might be treated.
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U.S. appeals court rules on legality of tariffs
On August 29, 2025, a federal appeals court ruled that the U.S. administration didn’t have the authority to impose tariffs by declaring a national emergency, upholding a lower court’s decision. The reciprocal tariffs in place on imports from most countries were established under the International Emergency Economic Powers Act (IEEPA), as were tariffs imposed on goods from China, Mexico, and Canada with the goal of reducing the flow of fentanyl.
For now, the ruling does not affect importers because enforcement is delayed until October 14, 2025, and an appeal to the U.S. Supreme Court is expected. If the Supreme Court rules similarly to the Court of Appeals, it’s uncertain what the reimbursement process might be.
In the meantime, these reciprocal tariff rates remain in place:
- For imports from countries with specific rates established: 15-41%
- The baseline tariff for goods from other countries: 10%
- On Chinese imports: 10% rate now extended until November 10, 2025
These fentanyl-related tariffs remain in place:
- On Chinese imports: 20%
- On Canadian imports: Increased to 35% as of August 1, 2025, except for goods that are USMCA certified
- On Mexico imports: As of July 31, it was announced that the 25% rate would stay in place for at least 90 days. USMCA-certified goods remain duty free.
Our U.S. Tariff Impact Analysis Tool helps customers see what type of tariffs have been assessed on their products and analyze the impact to their bottom line. Our self-serve ACE Import Intelligence tool gives companies visibility to their customs data regardless of whether the freight is moved by C.H. Robinson. Our Sourcing Analysis Tool helps customers model scenarios and understand the tariff and supply-chain impacts of sourcing their goods from alternative locations.
Cargo theft on the rise
Cargo theft is a major concern for the pharmaceutical industry, which relies on a highly regulated and secure supply chain for their controlled substances. While pharmaceuticals accounted for only roughly 6% of total cargo thefts in 2024, the rate of incidents grew by 136%.
No longer just a crime of opportunity, cargo theft is also increasingly organized. Multi-million-dollar crime rings are looking at every point of a supply chain for weaknesses. Organized theft accounted for less than 10% of stolen cargo in 2020 and grew to over 33% by the end of 2024.
In addition to tightening security, healthcare providers can strengthen their supply chains by proactively identifying equivalent drug substitutions, diversifying their specialty suppliers, and dynamically anticipating drug demand.
Pharmaceutical shippers are advised to work with supply chain partners that can safeguard their high-value products and ensure a resilient supply chain. C.H. Robinson is a certified pharmaceutical logistics provider: ISO 9001:2015 and GDP certified.