As of April 10, 2025, U.S. businesses are contending with significant cost increases and supply chain disruptions due to new tariff policies. While the specific percentages of the tariffs are being negotiated and changing on a seemingly daily basis, US laboratories across both industry and academia must deal with increased pricing on most imported goods.

These new US tariffs on essential lab equipment, supplies, and consumables are introducing a new layer of complexity into lab budgeting. Laboratory managers must now begin to carefully review sourcing strategies, coordinate disrupted timelines, prioritize reusable supplies, and work with U.S.-based distributors to mitigate cost pressures. With average duties approaching 25 percent, and significantly higher for some countries and products, lab managers are under growing pressure to reevaluate long-term planning, defer nonessential purchases, and make mandatory purchasing decisions that balance cost, quality, and operational continuity.

And while lab managers can't control trade policy, they can control their response. Managers can audit tariff exposure, optimize total cost of ownership, extend product and equipment lifespan, and secure resilient supplier partnerships to safeguard budgets. The best thing to do is to be prepared and stay well informed. The approaches outlined below offer a lab manager practical tariff strategies to protect productivity and financial stability amid ongoing uncertainty.

Audit Lab Exposure

Before responding to tariff-driven price hikes, lab managers need to clarify where their lab is most vulnerable. Start by mapping out the country of origin for all lab equipment SKUs, including major imported subcomponents, to identify opportunities to lower exposure.

Don't assume that just because something is made in the United States that it will be tariff-free, because many of the components are not.

Identify the high-value or high-volume items that are most at risk to help prioritize effective mitigation strategies before costs escalate further. Shift procurement toward U.S.-made or USMCA-compliant goods to reduce tariff impact. Be cognizant of elevated travel and shipping times, as supply chain disruptions have grown into a potential bottleneck in cross-border trade.

Extend the Life of Existing Equipment

To avoid the necessity of having to make extensive new purchases as tariffs inflate costs, labs should maximize their current assets' lifespan. Investing in maintaining a piece of equipment for a longer period through diligent preventative maintenance schedules, training staff on simple yet critical tasks like swapping filters and gaskets, prioritizing reusable supplies, and consistently documenting equipment uptime, labs can often extend a major asset's useful life by several years. Even a modest extension of lifespan can free up significant capital to offset tariff-driven price increases elsewhere.

Negotiate for Value, Not Just Price

In a market disrupted by tariffs, demanding deep price cuts from suppliers may not be feasible, as tariffs consume vendor margins. Both customers and vendors need to lean on value.

Begin familiarizing yourself with a wider array of brands. Chinese manufacturers frequently offer popular lower-cost alternatives, however, there are many competitive companies in the United States, Canada, and the European Union that make high-quality instruments while meeting strict regulatory standards compared to their Asian counterparts.

Instead of focusing solely on discounts, an effective lab manager tariff strategy is to negotiate extras such as operator training, extended warranties, or priority service agreements. These added benefits significantly reduce the total cost of ownership, helping labs navigate tariff-driven price hikes without eroding supplier relationships.

Diversify Suppliers and Pool Purchasing Power

Lab managers should look into strategic partnerships to secure better pricing through volume discounts. Through combining orders across institutions, departments, or campuses, and buying in bulk, lab managers can strengthen purchasing positions and oftentimes save on freight.

Pairing this pooling strategy with negotiating multi-year purchasing agreements or long-term service contracts locks in stable pricing and insulates lab budgets from future tariff fluctuations.

Build Strong Vendor Relationships

Personal relationships remain a lab manager's most valuable resource in an environment marked by uncertainty and rising costs. Lab managers are encouraged to proactively reconnect with sales representatives, smaller manufacturers/remanufacturers, equipment vendors, and professional networks. Such relationships can yield significant benefits, like access to newly refurbished equipment, rapid-response service, or valuable insights on tariff exemptions as supply chains tighten. When purchasing equipment becomes a necessity, warrantied refurbished equipment from a reputable source is an advantageous and cost-effective strategy to bypass tariff costs.

While all businesses must prepare for these new policy and economic deviations, approach tariff strategy with optimism and diligence. Find the most efficient and effective opportunities that lead to creative solutions, helping your lab emerge stronger through periods of uncertainty.

— Wes Moschetto, General Manager, Medical Equipment Source