Tariff Update: Navigating New Provincial Policies & Proactive Action
 
While trade under the United States-Mexico-Canada Agreement (USMCA) remains tariff-free, Canada was excluded from a recent U.S. decision to grant a 90-day pause and tariff relief to 57 other countries. As a result, Canadian imports outside of USMCA compliance continue to face a 25% tariff, with a 10% surcharge applied to energy and potash products. Although reciprocal tariffs were lowered to a baseline of 10% for most affected nations, this reduction does not apply to Canada or Mexico. Fentanyl-related tariffs also remain unchanged. These developments offer little protection to Canada’s healthcare sector, which now faces growing financial strain and an increased risk of supply chain disruptions. 

Short-Term Relief for Medical Devices Only

On April 15, the Government of Canada introduced a temporary six-month tariff exemption for select U.S.-origin goods essential to public health and safety. While this includes some medical devices, the exemption does not extend to medications or broader categories of clinical supplies, many of which have limited alternatives and are essential to patient care.

 
HealthPRO Canada: Proactive Action

To support our members and safeguard the healthcare supply chain, HealthPRO Canada has mobilized a cross-functional Tariff Task Force, meeting frequently to monitor developments, coordinate national action, and strengthen system-wide resiliency. Key initiatives underway include: 

• Reviewing and updating RFX documentation to reflect evolving federal and provincial policies where required  

• Engaging suppliers to secure protective allocations and ensure continuity through multi-supplier contract models 

• Analyzing product origin data to flag high-risk items with limited clinical substitutes 

• Identifying and prioritizing clinically essential products at risk due to tariffs 

• Exploring Canadian and European suppliers as longer-term sourcing alternatives 

• Advocating with all levels of government for healthcare-specific tariff exemptions, including formal briefings, submissions, and participation in federal roundtables 

• Collaborating with key industry associations including Medtech Canada, Innovative Medicines Canada, and the Canadian Generic Pharmaceutical Association to ensure a unified sector voice 

• Engaging members through advisory forums, including the Healthcare Leadership Advisory Council (HLAC) and Pharmacy Advisory Council (PAC), to align on response strategies and share insights 

• Providing regular updates, webinars, and risk briefings to ensure members stay informed and prepared 

  
Strengthening Domestic Pathways Through New Partnership

As part of our long-term resiliency strategy, HealthPRO Canada has partnered with the CAN Health Network to help accelerate the adoption of made-in-Canada healthcare innovations. This collaboration will help scale Canadian-developed solutions by connecting innovators with HealthPRO Canada’s national procurement infrastructure and network of 2,000+ healthcare facilities. 

Innovation Accelerator: Early Access to Canadian Solutions

Through our Innovation Accelerator, members now have access to leading Canadian innovators offering proven technologies that align with clinical needs and system priorities. All innovations in this program are developed in Canada, supporting domestic manufacturing, reducing supply chain vulnerability, and helping our members implement future-ready solutions faster.