The US has been at the centre of a shift in global trade dynamics these last few weeks, resultant from a rise in geopolitical and economic uncertainty. We’ve seen recent tariff policy changes creating an increasingly volatile environment for exporters and importers alike, particularly those in the medical device and IVD sectors. 

Although the US has historically favoured free-market trade, recent moves have suggested a move back towards protectionist policies. The reintroduction and consideration of tariffs on strategic goods—including medical and diagnostic equipment—reflect a political strategy of favouring domestic production over foreign supply chains.

Localised Supply Chains De-risking volatility: 

In the face of this uncertainty, localised and diversified supply chains are proving to be more valuable than simply chasing the lowest-cost offshore manufacturing. The fragile nature of extended global supply chains was evidenced during the COVID-19 pandemic and continues to be tested by ongoing geopolitical movements, shipping disruptions, and variable trade policies.

While USMCA (United States–Mexico–Canada Agreement) continues to offer a near-shore option for Canadian and Mexican manufacturing operations looking to access the US market tariff-free, it’s clear that even these arrangements are not to be taken for granted. Recently, President Trump temporarily reinstated a 25% tariff on Mexican and Canadian imports before reverting back to the original USMCA terms. Although short-lived, it certainly raises concerns about the reliability of trade agreements and highlighted the need for proactive supply continuity planning.

Another notable change is the recent removal of the ‘de minimis’ threshold, particularly aimed at shipments entering the US from China. This change means fewer goods qualify for tariff-free entry, increasing landed costs for many low-value shipments — a direct hit to companies relying on drop-shipping models. While this change is primarily aimed at China, its ripple effect is causing global supply chain reviews and shifting sourcing strategies.

For UK companies shipping into the US, especially in regulated sectors like medical diagnostics, these evolving thresholds and tariff policies could affect both cost-predictability and operational reliability. Tied with the recent news about LDT uncertainty and FDA department cuts, means entering into the US healthcare industry is incredibly complex. 

How do we manage this at Hurdle?

At Hurdle, we’ve long adopted a proactive strategy of diversification and de-risking across both our physical and virtual operations.

• We operate within a multi-region framework that enables us to remain compliant with local testing, diagnostics, and import regulations. 
• Our supply chain is designed to be agile and resilient, with localised fulfilment, kitting, logistics, and lab services in multiple territories. 
• Through this operational model, we manage and consolidate supply and service networks on behalf of our clients — providing consistent quality and service continuity without over-reliance on any single geographic hub. 

This strategy not only reduces lead times, lab processing times and logistics bottlenecks but also shields our clients from the financial and operational risks associated with sudden tariff changes or political shocks.

What you can do:

1. 1. Evaluate your supply chain for gaps and weaknesses. Consider using cost-benefit analysis, SWOT analysis, supplier risk management and geopolitical risk-scoring tools to assess vulnerabilities and contingency plan 
   2. Understand the HS codes for where tariffs will not affect (typically critical goods that cannot be easily substituted for domestic alternatives) 
   3. Keep abreast of changes and inform your customers of the impacts and potential changes that may be necessary.
   4. Ensure you have the right customs clearance documents and declarations for all shipments entering the US
   5. Consider outsourcing your operations to partners such as Hurdle who can manage your supply chain and bring supply chain diversification without the heavy resource requirements on your own operations teams

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