Tariffs, Trade, and Turbulence: A Wake-Up Call for Life Sciences Leaders

The 2025 tariff surge introduced by the US administration has added yet another layer of difficulty and uncertainty to an already complex global supply chain. For pharmaceutical, biotech, and medical device firms, the question isn’t whether these changes will affect operations—it’s how deeply and what to do about it. 

Building a forward-looking strategy is tough when the ground keeps shifting. There is no crystal ball to assist in determining outcomes. New duties of 10% to 25% on imports from key countries have already sparked disruptions in raw material sourcing, pushed up costs, and strained regulatory timelines. With signs pointing to even broader tariffs on the horizon, executive teams are urgently evaluating their risk exposure and response plans.   

Key Questions Facing Life Sciences Leaders: 

• How do we protect margins and maintain operations amid rising trade barriers? 
• How will tariffs impact product costs, regulatory filings, and supply chain resilience? 
• What can we do right now to reduce exposure and preserve continuity? 
• How do we continue to innovate and fund R&D when operational costs rise? 
• What role should onshoring or nearshoring play in our long-term strategy? 
• How can we engage more effectively with regulators and trade policymakers? 
• What can we learn from early movers who have adapted to similar trade conditions?   

Immediate Tactics to Consider:   

1. Reassess Sourcing Models: Avoid overreliance on high-tariff countries. Explore dual sourcing and “friend-shoring” opportunities in regions with more stable trade agreements. 
2. Simplify Value Chains: Evaluate whether partial assembly, packaging, or software loading can be completed domestically to reduce tariff valuations without overhauling entire manufacturing flows. 
3. Strengthen Trade Compliance: Update product classifications, documentation, and tariff codes. Companies that act now can better defend against customs audits and avoid costly delays. 
4. Build Inventory Buffers Strategically: Stockpile critical inputs where feasible, but tie them to clear risk modeling and expiration timelines. 
5. Collaborate Across Functions: Procurement, regulatory, finance, and legal teams must work together to create a holistic trade risk plan. Siloed responses will fall short. 
6. Model Tariff Scenarios: Use forecasting tools to simulate cost and timeline impacts at various tariff thresholds. This can guide pricing strategies, budget planning, and investment decisions. 

At NSF, we’re helping clients across the globe tackle tariff readiness audits, consulting and training — preparing you today for tomorrow’s disruptions.

Exclusive Round Table: Tuesday, May 6, at 10 am EDT

You can hear directly from NSF Experts live in an Exclusive Round Table + Q&A on Tuesday, May 6, at 10 am EDT.

Many of our experts are former regulators and supply chain strategists who will discuss the latest developments and what practical steps to take next. We hope you can join us as we unpack these issues and ask the questions that matter most to your business. 

Space is limited to accommodate the large amount of great questions that we're receiving. Register now and secure your spot now.

We’ll continue publishing insights and strategic guidance on how life sciences organizations can stay resilient, agile, and compliant. Follow NSF Life Sciences to stay informed as the landscape evolves.