Introduction

In 2025, escalating trade tensions—especially between the U.S. and its global partners—are reshaping industries far beyond manufacturing. The healthcare sector, long considered resilient to geopolitical disruptions, is now caught in the crossfire. For Canadian healthcare businesses, this means higher costs, disrupted supply chains, and an urgent need to explore new global partnerships. But alongside the risks lie real strategic opportunities.

1. The U.S. Tariff Agenda: From China to Canada

In recent years, the U.S. has adopted a protectionist stance, introducing sweeping tariffs not only on China and the EU but also on close allies like Canada. These include significant duties on pharmaceuticals, diagnostic equipment, and critical inputs used in the medical supply chain.

According to AlphaSense, medical devices and pharmaceuticals are among the sectors most exposed to rising tariff costs. The American Hospital Association and others have warned of direct downstream effects on patient care due to increased equipment prices and limited product availability (Healthcare Dive).

Tariffs once reserved for heavy industry are now being imposed on sensitive and essential healthcare goods—raising costs across the North American ecosystem.

2. Canada’s Response: Between Retaliation and Diversification

Canada responded with countermeasures of its own, imposing 25% tariffs on a range of U.S.-made goods, including medical technologies (BLG). The government also began restricting U.S. access to provincial contracts in an effort to shield domestic suppliers.

In a strategic pivot, Canada’s federal government, under Prime Minister Mark Carney, has explicitly aimed to reduce economic dependency on the United States. As recently reported by the Wall Street Journal, Carney declared that “the era of deep integration with the U.S. is over” and called for a more diversified global trade strategy (WSJ).

This pivot is not just political—it’s pragmatic. Relying on one market for over 75% of exports has proven risky.

3. Supply Chain Disruptions and Strategic Sourcing in Healthcare

Tariffs have caused tangible impacts across the Canadian healthcare system. Many hospitals and clinics have reported rising procurement costs for items ranging from surgical tools to imaging equipment.

Un CHA Learning podcast highlights how even modest tariffs can create ripple effects across the entire system—from delayed deliveries to reduced access to U.S.-based suppliers.

To adapt, many healthcare businesses are exploring nearshoring or reshoring. But these shifts require capital, time, and updated trade relationships. It’s not a simple switch.

4. The Opportunity in Trade Diversification

While tariffs have disrupted long-standing cross-border flows, Canada’s extensive network of free trade agreements offers a way forward. Deals like CETA (with the EU) and CPTPP (with Pacific nations) can help healthcare companies bypass tariff bottlenecks and secure more stable sourcing options.

According to Global Affairs Canada, these agreements not only reduce or eliminate duties but also open access to regulatory frameworks that favor Canadian exporters.

Canadian pharmaceutical companies can, for instance, import active pharmaceutical ingredients (APIs) duty-free from Europe or Japan, potentially reducing dependency on American intermediaries.

5. Financing Growth Amid Global Uncertainty

Transitioning away from U.S.-centric supply chains is not cheap. It requires capital to identify new suppliers, meet international compliance standards, and rebuild logistics infrastructure.

Fortunately, new federal programs have been launched to help Canadian companies offset tariff-related costs. These include working capital loans, export support, and tax credits tied to international expansion.

For private lenders and financing specialists, this presents an opening to support Canadian healthcare businesses navigating trade realignment.

Conclusion: Navigating Risk with Strategy

The global trade landscape is shifting rapidly. While tariffs have introduced volatility into the Canadian healthcare industry, they also create opportunities to rethink and rebuild for the future.

Companies that embrace diversification, strengthen trade relationships beyond the U.S., and invest in resilient supply chains will emerge more stable—and more competitive. In this moment of uncertainty lies a clear path forward for healthcare businesses willing to adapt.