Impact of U.S. Tariffs on Canadian Healthcare and How Digital Health Solutions Can Save You

The U.S. has reintroduced a wave of tariffs. 

These new trade rules may look like just another economic decision—but for Canada’s healthcare system, the impact could be far more serious.

We rely heavily on medical imports from the U.S.—from devices like MRI machines to everyday consumables and even medications. 

In fact, around 70–80% of our medical devices are imported, and nearly 30% of our pharmaceuticals come from the U.S.

Now, imagine a 25% tariff on essential items. 

That’s not just a number—it’s a direct hit on hospital budgets, already stretched thin. 

It could lead to delays in care, shortages in critical supplies, and even higher costs passed on to patients.

This isn’t just about economics anymore. It’s about maintaining stable operations, ensuring patient safety, and keeping care accessible for everyone.

So, what can we do?

This is where digital solutions come in. 

From smarter supply chains to virtual care and AI-powered forecasting, technology can help us soften the blow—and build long-term resilience.

The Ripple Effect of U.S. Tariffs on Canadian Healthcare

Canada and the U.S. aren’t just neighbours—we’re partners in a tightly connected trade relationship. 

That closeness brings many benefits, but it also means when the U.S. changes its trade policies, Canada feels the impact. And right now, the biggest concern is tariffs.

President Trump’s recent tariff measures—especially under the IEEPA orders—are putting serious pressure on Canada’s healthcare system. 

Add to that the complexity of meeting USMCA compliance rules, and it becomes a major operational headache for healthcare suppliers and providers here.

We Rely on U.S. Healthcare Imports—A Lot

Let’s be honest—Canada depends heavily on the U.S. for healthcare supplies.

• Medical Devices: Nearly 70–80% of the devices used in our hospitals are imported. The U.S. alone supplies around 38% to 45% of them. That’s over CAD $5.2 billion worth of equipment like MRIs, surgical tools, hearing aids, and more—every single year.
  
• Pharmaceuticals: About 27–29% of our pharmaceutical imports come from the U.S. That’s US $5–6 billion annually in medications, vaccines, and blood products. And yes, we export back too, but the supply chain goes both ways—intertwined and interdependent.

So when trade friction rises, our healthcare system gets caught in the crossfire.

What Tariffs Mean for Canadian Healthcare

Here’s what these tariffs could do if not addressed:

• Higher Costs: A 25% tariff on key supplies means more expensive imports. Those costs don’t just sit with manufacturers—they get passed down to hospitals, insurers, and yes, patients. U.S. data already shows hospitals expecting 15%+ increases in costs and 10%+ for meds. We’re not far behind in feeling those ripples.
  
• Complex Paperwork, Big Consequences: If a Canadian product doesn’t meet USMCA origin rules? It gets hit with that full 25% tariff. Proving compliance isn’t easy—it’s a paperwork-heavy, legally tricky process. That’s time and money spent just to avoid penalties.
  
• Disrupted Supply Chains: Our healthcare system is still recovering from COVID-19 shocks. Tariffs could add more cracks. 81% of medical equipment manufacturers already expect delays and shortages. And for pharmaceuticals, our reliance on international Active Pharmaceutical Ingredient (API) sources—mostly India and China—means even one hiccup can cause cascading effects across hospitals and pharmacies.

Real Risks for Hospitals and Patients

Tariffs might seem like a policy issue on paper—but for Canadian healthcare, they come with very real consequences.

When healthcare providers rely so much on U.S. imports, even small changes in trade rules can create huge problems. And the new wave of U.S. tariffs is already showing signs of that.

Hospitals Are Under Financial Strain

Tariffs work like a tax on imported goods. That means everything—devices, equipment, even medications—gets more expensive. Those extra costs don’t just disappear. They flow down to hospitals, clinics, and eventually, to patients.

Studies from the U.S. (which also reflect North American supply chains) show that hospitals expect at least a 15% cost increase within six months of tariff enforcement.

That’s a big problem—especially for hospitals already working with razor-thin budgets.

When expenses go up, hospitals are forced to make tough choices:

• Cutting budgets in other areas like hiring, innovation, or even cybersecurity.
  
• Delaying upgrades to medical equipment or putting off digital transformation projects.
  
• Spending more time and money on admin work—like figuring out USMCA compliance just to avoid a 25% tariff.

All of this makes it harder for healthcare organizations to deliver the level of care patients expect—and deserve.

Fragile Supply Chains = Real Patient Risk

The pandemic exposed how fragile our medical supply chains are. Tariffs only add more pressure.

Here’s what experts are saying:

• 90% of healthcare supply chain professionals expect disruptions.
  
• 81% of medical device manufacturers anticipate longer lead times and product shortages.

And Canada’s situation is uniquely risky. We import 70–80% of medical devices and a large portion of our medications and APIs (active ingredients). That means even a slight disruption in the supply chain can delay treatments or lead to critical shortages.

If hospitals can’t get the tools or medications they need, clinicians may be forced to:

• Delay surgeries or procedures
  
• Use backup or second-line products
  
• Ration care

None of these are good options—and they all directly affect patient safety.

Why This Hits Vulnerable Patients the Hardest

Tariff-driven costs eventually reach patients—through higher service charges, insurance premiums, or out-of-pocket expenses.

But not everyone can handle that hit equally.

• Low-income Canadians and those with chronic conditions are at the greatest risk.
  
• They rely more heavily on affordable medications and consistent care.
  
• Rural and remote patients may face fewer care options if local services are scaled back.

And let’s not forget: generic drugs, which are often the most affordable, are also the most vulnerable—since they depend on imported ingredients.

The Digital Lifeline: How Technology Builds Resilience

Yes—U.S. tariffs are a serious challenge. But they’re also a wake-up call. 

They remind us that Canada’s healthcare system needs to be more resilient. That’s where digital health tools come in.

These aren’t just efficiency upgrades. They’re lifelines. 

Let’s break down four ways digital solutions can help us stay strong—even when trade pressure hits hard.

1. Smarter Supply Chain Management

Modern supply chain tools do a lot more than track inventory.

They give hospitals a real-time view of stock, shipments, and supplier performance. They can even predict delays or shortages before they happen. That means fewer surprises, better planning, and less waste.

• AI tools can forecast demand using past trends and market signals.
  
• Hospitals can quickly spot and onboard new suppliers.
  
• Blockchain can help prove where a product came from—useful for trade compliance.

Bottom line: With tariffs disrupting imports, smart SCM helps providers stay prepared—not panicked. Workday’s integrated supply systems help healthcare teams move from manual tracking to smart, data-driven decisions.

2. AI That Supports Smart Decisions

AI helps healthcare teams make faster, smarter decisions.

It can pull data from EHRs, staffing tools, and supply systems to build predictive models. These models can forecast demand for things like hospital beds, staff, or PPE. AI also supports:

• Reading medical images faster
  
• Spotting high-risk patients early
  
• Automating routine tasks like notes and forms

Must Explore: Top AI Solutions in Healthcare That Actually Work in 2025

3. Telehealth That Keeps Care Going

If budgets are tight and hospitals are stretched, telehealth is a game-changer.

Virtual care reduces the pressure on physical resources and helps patients get the care they need—especially in rural or remote areas. It’s faster, more flexible, and often cheaper for everyone.

• Patients don’t have to travel
  
• Clinics can free up space for urgent cases
  
• Remote monitoring helps keep chronic care on track

4. Systems That Actually Talk to Each Other

To get the most from digital tools, they all need to connect. That’s called interoperability.

When EHRs, billing, supply chain, and logistics systems work together, everything runs smoother:

• Less manual work
  
• Fewer errors
  
• More accurate data

It also helps leaders plan ahead by using clinical data to inform supply orders or staffing needs.

A Made-in-Canada Moment: Why Local Innovation Matters

Here’s something we don’t talk about enough: Canada relies heavily on U.S.-based EMR systems like Epic, Cerner, and Meditech. 

These platforms run core parts of our hospitals and clinics—from patient records to scheduling and billing.

But when trade tensions rise, so does the risk.

What happens if U.S. software licensing costs increase due to tariffs? Or if access is delayed or limited because of policy changes?

That kind of dependence puts our healthcare system in a vulnerable spot.

Now’s the Time to Build Canadian

This is Canada’s moment to double down on homegrown digital health innovation.

We already have incredible talent and strong healthcare institutions. What we need now is more investment in systems that are:

• Built here
• Supported here
• Designed for our healthcare realities and regulations

By creating and adopting Canadian-made tech, we can reduce our reliance on foreign vendors and protect against sudden pricing or supply changes.

Where SyS Creations Comes In

At SyS Creations, we’re proud to be a Canada-based health-tech company.

For over 10 years, we’ve built software solutions tailored specifically for Canadian healthcare providers—hospitals, clinics, home care teams, mental health platforms, and more.

We understand PIPEDA. We follow PHIPA.

And we speak fluent healthcare—because it's all we do.

From custom EMR systems to virtual care platforms and automated workflows, we help providers future-proof their operations with tech they can rely on.

No offshore handoffs. No vendor lock-ins. Just solutions that work for Canadian care.