New analysis reveals that global tariff ripple effects could severely impact Australia’s healthcare manufacturing, with costs passed down through complex international supply chains. A first-of-its-kind calculator developed by Fair Supply is helping businesses navigate these hidden expenses.
The healthcare and pharmaceutical industries are particularly vulnerable to these cascading tariff impacts, according to Dr Arne Geschke, Co-Founder and Chief Technology Officer at Fair Supply. Their modeling shows indirect tariff costs could exceed $1.6 billion for the sector alone.
“Tariffs will be embedded in the DNA of global supply chains; without visibility into those connections, companies are flying blind. While the focus has often been on tariffs applied at point-of-entry, the real damage is further downstream,” Dr Geschke said.
The calculator maps over 60 billion global supply chains and tracks how tariffs flow through multiple tiers of suppliers before reaching Australian businesses. This provides critical visibility into cost increases that traditional monitoring might miss.
For healthcare organisations navigating increasingly complex procurement decisions, the tool offers the ability to compare sourcing options across different countries, potentially identifying significant savings opportunities while maintaining supply chain integrity.
“These indirect costs are frequently invisible to traditional monitoring and are often passed onto Australian businesses with little control over their full supplier ecosystem. Our tool gives businesses the visibility they need to make strategic, informed decisions,” explained Dr Geschke.
Overall, the combined direct and indirect costs of new and reciprocal tariffs could cost the Australian economy more than $15 billion, with healthcare bearing a disproportionate burden.
Read also: The Impact of trade agreements and tariffs on Australia’s supply chain
Ritchelle is a Content Producer for Healthcare Channel, Australia’s premier resource of information for healthcare.
