This year has been marked by chaotic world markets and trade wars instigated by the current US administration. While Canadians have come together to support Canadian businesses, many medical and patient care products depend on an integrated supply chain with global and American sources. Tariffs on these products may cause significant cost increases and procurement issues like delays and shortages. The impact could be felt in hospitals, community care, and the individual caregiver caring for someone at home. So, when planning and costing for years of an individual’s care, it is wise to consider the impact of tariffs.

Hospitals and healthcare systems regularly purchase medical devices in many categories, such as pacemakers, dialysis machines, hip and knee prosthetics for replacement surgeries, dental products, and more. The medical devices industry in Canada is valued at approximately USD$9.47billion or 2.3% of the global market. Canada imports about 70% of its medical devices, with 38% imported from the US, followed by China, Mexico, and Germany. [1]

During the COVID pandemic, Canada was able to scale up the manufacturing of ventilators to meet the extraordinary demand within a very short time.[2] However, in the production of many medical devices, we are dependent on imports and potentially impacted by tariffs.

The Canadian Medical Association recently reported that most physicians are very concerned about tariffs due to “the rising cost of living, the escalating cost of medications, and the risk of potential shortages of medications.” [3] During the COVID pandemic, these concerns became a reality with disrupted supply chains causing shortages and rationing for medications in high demand.

With regard to pharmaceuticals, Canada has an integrated global supply chain. The Canadian Association for Pharmacy Distribution Management (CAPDM) notes that Canada imports about $30 billion of pharmaceuticals annually, with approximately 16% of Canada’s drug supply coming from the United States.

Canada also exports manufactured medications to the US. A recent study by University of Toronto researcher Mina Tadrous focused on 400 ready-to-use drugs manufactured in Canada and exported to the US. They concluded that tariffs could significantly impact a wide range of medications supporting patient care, from antibiotics to common mental health medications. About $3 billion USD  of Canadian manufactured drugs are exported to the US. If 25% tariffs were placed on those drugs, it would cost an additional $750 million. Of those ready-to-use medications, 28 have no alternative supplier. [4]

Numerous other factors affect integrated global supply chains for pharmaceuticals. Still, it is clear that tariffs could have far-reaching impacts on the supply, cost, and availability of medications for Canadians and American buyers.

Tariffs will also have a predictable impact at the individual care level. Considering current and future care needs is important when costing out care for clients and multiyear care plans.

In this example, consider an 80-year-old woman who wishes to stay in her own home while she receives cancer radiation treatments 5 days per week in a hospital that is 45 km away from her home. Partway through the 8 weeks of scheduled radiation treatments, she becomes much weaker and has issues with her balance and being able to walk to the bathroom. How is the care plan altered? And at what cost?

• Numerous medical devices are required to enable her to stay in her home with her husband’s assistance. Recommended devices include a transportation wheelchair to assist in transfers to the hospital, a stair lift to get upstairs at home, a hospital bed with a special mattress, walkers on each floor, a bedside commode for nighttime, and other items. Some of these devices can be rented, but the husband prefers to buy the products.
• The medication profile is changed with about 12 new drugs being added to assist with pain control and symptom management from the effects of the radiation.
• The husband requests blister packs from the pharmacy so he can manage the more than 18 medications his wife is now taking but the pharmacist will only provide blister packs if he has prescriptions for 3 months for each medication, and the appropriate supply for each medication.

As you can see in this example, the cost of medical devices could attract a significant price increase if tariffs were applied. In addition, the cost and supply of critical medications could be affected.

In summary, many medical and patient care products Canadians use depend on an integrated supply chain with global and American sources. The impact of tariffs on these products may cause significant cost increases, delays, other issues with procurement, and potential shortages. Since the effect of these tariffs could be felt across the entire healthcare system, from hospitals to community care and to the individual caregiver at home, it is essential to consider this factor when planning for an individual’s care and costing out multiyear care plans.

[1] https://ised-isde.canada.ca/site/canadian-life-science-industries/en/medical-devices/industry-profile

[2] https://www.marsdd.com/our-story/how-canada-produced-thousands-of-new-ventilators-within-months/

[3] https://www.cma.ca/about-us/what-we-do/press-room/commentary-trade-war-yet-another-blow-patient-care-canada

[4] Tadrous M, Chaudhry S, Panhuysen J, Konstantinidis I, Suda KJ. Trade Tariffs on Canadian Pharmaceuticals—Implications for US Drug Supply and Costs. JAMA. Published online March 31, 2025. doi:10.1001/jama.2025.4583