Tariffs and Pharma: What the Rising Trade Pressures Mean for Supply Chain Security

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As global trade tensions rise, pharmaceutical manufacturers and supply chain stakeholders face new challenges—and new risks. The U.S. government has signaled renewed focus on tariffs targeting key markets, and the ripple effects could be significant across the pharma landscape.

In a recent discussion featuring Ryan Kelly (Senior Director, Supply Chain Security & Brand Protection, Rx-360), Riya Cao (CEO, LSPedia), Daniel MacKinnon (SVP of Sales & Marketing, LSPedia) and Rose Campasano (VP of Industry Relations, LSPedia) , the conversation turned toward the intersection of tariffs, sourcing risk, serialization, and how the industry can prepare for what’s ahead.

Tariffs Are Here to Stay—and Pharma Must Be Ready

“We don’t really know where the tariffs are going to end up... but we can probably be very certain to say there will be tariffs. And it’s not something that can go away quickly.”
— Riya Cao, CEO, LSPedia

Tariffs introduce new cost pressures, prompting pharmaceutical companies to reassess sourcing strategies and supply chain structures. However, these changes often create new vulnerabilities—particularly around the introduction of substandard or falsified products.

“Anytime we see price increases, we see an increase in bad actors... threats of illicit materials and falsified medicines.”
— Ryan Kelly, Rx-360

As companies adjust to the economic realities of tariffs, safeguards like serialization and verification become more essential than ever. These tools aren’t just about regulatory compliance—they’re about protecting product integrity and patient safety.

Cost Pressures Can Open the Door to Counterfeits

As prices rise, the temptation to find cheaper alternatives can be risky. Lower prices may come with tradeoffs in quality, authenticity, or legality. The risk of counterfeit or diverted drugs entering the supply chain increases substantially when alternative sourcing is pursued without proper controls.

“With increased tariffs, organizations are going to respond. But as they respond, it really needs a keen eye on making sure any prices that are too good to be true, potentially are.”
— Ryan Kelly, Rx-360

This is where serialization becomes a strategic asset. DSCSA-compliant platforms like LSPedia’s OneScan provide traceability and real-time verification that help identify anomalies—such as diverted product or labeling issues—before they reach patients.

Beyond Compliance: Serialization as a Business Driver

“Why not track active pharmaceutical ingredients? Why not track other materials in the same system?”
— Riya Cao, LSPedia

Historically, serialization has focused on finished goods. But in the face of tariff-driven sourcing changes, it’s increasingly valuable to apply serialization tools to raw materials, APIs, and other upstream components. LSPedia customers are using OneScan to gain visibility across their entire supply chain—not just for compliance, but for better business intelligence.

From reverse logistics to alternative sourcing analysis, serialization data is proving to be an asset far beyond the scope of regulation. When used strategically, it helps reduce risk, improve transparency, and support growth—even in challenging market conditions.

Key Takeaways for Pharma Stakeholders

• Reevaluate your sourcing strategy now—before tariffs create bottlenecks or cost spikes.

• Use serialization data to assess supplier quality and validate product origin.

• Monitor for pricing anomalies, which can signal counterfeit or diverted product.

• Expand serialization beyond finished goods to include APIs and materials.

Final Thoughts

Tariffs aren’t just a policy headline—they’re a supply chain reality. Companies that are proactive in adapting their operations and using available tools like OneScan will be better equipped to protect product quality, remain compliant, and respond to global disruptions with confidence.

To learn more about how LSPedia helps manufacturers, CMOs, and dispensers strengthen their supply chain through serialization and exception management, contact us today.