Tariffs may seem like geopolitical headlines or economic policy levers, but they have immediate and measurable effects for healthcare manufacturers. From increasing costs on essential materials to forcing shifts in commercialization models, tariffs can dramatically alter go-to-market strategies.
At Connexio Health, we help medical device, pharmaceutical, diagnostic, and biotech innovators respond to disruption with agility. Here’s what healthcare manufacturers need to know—and do—when tariffs are in play.
The True Cost of Tariffs in Healthcare
Tariffs are government-imposed duties on imported goods. When these apply to materials used in healthcare products, such as electronic components, active pharmaceutical ingredients, or packaging supplies, they impact everything from unit economics to launch timelines.
A diagnostic manufacturer sourcing overseas electronic parts may face higher costs and delays. A pharmaceutical company reliant on foreign ingredients could see its supply chain destabilized. Even if a product is entirely U.S.-made, packaging, shipping,g and labeling components might still be tariff-affected.
These impacts extend beyond the supply chain. Increased costs may erode the margin or require price adjustments. For provider organizations under value-based care pressures, this can create friction, especially when outcomes, reimbursement, and budgets are under scrutiny.
The Commercial Model Under Pressure
Research from the Alexander Group shows how leading companies react to tariff-induced disruptions. According to their findings, 83 percent of affected firms permanently adjusted their commercial strategies. These changes include:
- Accelerated use of virtual sales and account management models
- Tighter account segmentation to focus on high-margin opportunities
- Investment in analytics to optimize territory planning and resource deployment
This shift isn’t temporary. As global instability, inflation, and tariff risk persist, manufacturers must design commercial models that flex and adapt.
Three Moves to Make Right Now
Whether your company is already feeling the impact of tariffs or simply planning for volatility, there are immediate steps you can take:
1. Audit Your Supply Chain
Map your current supplier base and assess exposure to tariff-related cost increases. Consider alternatives or backup sources that allow for faster pivots.
2. Rethink Pricing and Profitability
Work with your finance and sales leadership to review pricing models. Where are margins at risk? What are the thresholds your customer base will tolerate? Consider bundling, subscription models, or value-based pricing structures.
3. Reposition Your Sales Messaging
Equip your commercial teams with messaging that highlights product value, clinical outcomes, and economic benefit. With many providers operating under tighter budgets, clarity around total cost of ownership and ROI is critical.
The Connexio Health Advantage
At Connexio Health, we specialize in commercialization strategies that account for complexity. Whether you’re launching into a competitive space, navigating uncertain economic conditions, or realigning your sales force, we bring the insights and execution support you need to stay ahead.
Tariffs may be outside your control, but how you respond is not. Now is the time to assess, adapt, and accelerate.
To learn more about commercialization strategies that accelerate success, visit connexiohealth.com.
