Shoring Up the Healthcare Packaging Supply Chain is a Lot Like Flying a Plane

Tariffs could be a hidden opportunity for packaging professionals to re-evaluate and diversify suppliers.

The experts agree that there is no time to waste the chance to re-evaluate your packaging supply chain, strengthen its resiliency, and mitigate the impact of potential tariffs.
The experts agree that there is no time to waste the chance to re-evaluate your packaging supply chain, strengthen its resiliency, and mitigate the impact of potential tariffs.
Getty Images: gece33

Key Takeaways:

  • Any discussion about pharma manufacturing undoubtedly involves packaging and it is the 10% blanket tariff on all imported goods that could theoretically impact healthcare packaging.
  • Just as certain packaging materials will be impacted, so too will the size of the companies making those packaging decisions.
  • The experts agree that there is no time to waste the chance to re-evaluate your packaging supply chain, strengthen its resiliency, and mitigate the impact of potential tariffs. 

Leave it to the pharmaceutical industry to bring a sense of bipartisanship to the U.S. Congress – all in the name of strengthening supply chains and bringing manufacturing of drugs and materials back to the U.S. In March 2024, the Homeland Security and Government Affairs Committee crossed party lines to prohibit executive agencies like FDA, CDC, and NIH from contracting with or extending loans and grants to a “biotechnology company of concern” headquartered in a foreign adversary’s government. 

In February 2025, Republican Congresswoman Claudia Tenney (NY-24) re-introduced The PILLS Act (aka Producing Incentives for Long-term Production of Lifesaving Supply of Medicines) to promote the domestic production of generic medicines and shift production away from India and China. This month, Senator Bernie Sanders (I-VT) agreed with President Trump that drug prices are too high and that he would support legislation that matches the president’s goal of lowering those costs; lower drug prices will impact future supply chain decisions.

However, there is less consensus with regard to tariffs and how they may be a tool for safeguarding the healthcare supply chain. An investigation of Section 232 (which imposes tariffs) of the Trade Expansion Act, was launched by the Commerce Department to determine if the pharmaceutical supply chain poses a threat to national security. Premier Inc., a technology-driven healthcare improvement company, wrote in response to a request for comments from the Commerce Department that “the thoughtful and targeted use of tariffs can provide to supply chain resiliency in the long-term, material increases in tariffs on healthcare supplies coupled with rapid implementation timelines can result in unintended consequences that increase costs and shortages in the short-term.”

PwC estimates that a 25% tariff would burden the economy with $76 billion in added costs (The Hill). Nick Iacovella, executive vice president, Head of Public Affairs & Communications, Coalition for a Prosperous America (CPA), a bipartisan organization representing exclusively domestic producers, counters that tariffs would encourage U.S.-based manufacturing of pharmaceutical packaging, thereby reducing long-term risks of supply disruptions and quality concerns related to foreign imports. “Ultimately, those benefits far outweigh potential short-term cost increases,” he says.

In its written response to 232, the CPA’s position is that “the U.S. must pursue a multi-pronged strategy to rebuild a secure and resilient pharmaceutical supply chain. Section 232 trade measures must address the full scope of supply chain fragility, reduce single-source dependency, and support the rebuilding of an integrated U.S. pharmaceutical manufacturing base.”

Sterile Packaging Will Be Hardest Hit

Any discussion about pharma manufacturing undoubtedly involves packaging and it is the 10% blanket tariff on all imported goods that could theoretically impact healthcare packaging. Glenn Hunzinger, U.S. health industries leader, PwC, says tariffs may apply to packaging components sourced from countries affected by trade measures, regardless of whether the drug itself is tariff exempt. “Sterile injectable packaging components, including vials, stoppers, and syringes, are more at risk due to their stringent compliance standards and limited supplier base. These requirements make them more sensitive to trade disruptions compared to packaging for solid dosage forms,” he says.

Iacovella agrees, “Sterile injectable packaging and other complex pharmaceutical delivery systems are typically at higher risk due to fewer qualified manufacturers and greater dependency on specialized raw materials or components predominantly sourced overseas.”

Premier points out that enteral feeding syringes have no current known manufacturing outside of China, leaving them susceptible to large tariffs. “The sterile injectable market is already prone to shortages for multiple reasons and tariffs could put additional pressure on those products, especially those manufactured outside the U.S.,” says Mark Hendrickson, director of Supply Chain Policy for Premier Inc. 

Opportunity Lies on the Runway

Just as certain packaging materials will be impacted, so too will the size of the companies making those packaging decisions. Brendan McCarthy, CPA, audit partner at Grassi & Co., certified public accountants who serve the life science industry, explains that established companies with commercialized product that know their margins and know their supply chain won’t have as hard a time. “They can typically figure out more easily how to move to other countries or if they even want to do that.”

Pharmaceutical Innovations Report
Discover the latest breakthrough packaging technologies shaping the pharmaceutical sector. This report dives into cutting-edge innovations, from smart containers that enhance patient safety to eco-friendly materials poised to transform the industry’s sustainability practices. All from PACK EXPO. Learn how forward-thinking strategies are driving efficiency and redefining what’s possible in pharma packaging.
Learn More
Pharmaceutical Innovations Report
Medical Device Innovations Report
Cutting-edge packaging technologies are transforming the medical device sector in PMMI’s “Innovation in Medical Device” report, featuring advanced materials, smart solutions, and evolving regulations. Editors share insights from nearly 300 PACK EXPO booth visits—each product deemed new and truly innovative—alongside video demonstrations of the equipment and materials on display.
Learn More
Medical Device Innovations Report