Proposed Tariffs and Their Impact on U.S. Veterinary Medicine

Overview: New Tariffs and Veterinary Medicine

Duffy Jones, DVM
Co-Founder, DVMSuccess

Recent proposals to impose tariffs on imported goods have raised concerns in the veterinary field. These tariffs – additional taxes on foreign products – aim to protect U.S. industries but may inadvertently affect animal healthcare. Many pharmaceuticals, medical supplies, and active pharmaceutical ingredients (APIs) used in veterinary medicine are sourced internationally, especially from China, Mexico, and Canada.

Veterinary clinics rely on a steady supply of medications and equipment, so any trade disruption could impact their costs and operations. The following report assesses which veterinary-related products are covered by the proposed tariffs, and how these tariffs might influence small and large animal practices in terms of costs, drug availability, and supply chain stability.

Tariff Coverage of Veterinary Drugs, Supplies, and APIs

Are veterinary drugs and supplies included in the tariffs?

The proposed tariff lists cover a broad range of imports but notably exclude finished pharmaceutical products in order to avoid directly taxing medicines.

In other words, most finished veterinary drugs (medications ready for use) are not explicitly subject to the new tariffs. However, the situation is nuanced: while final pharmaceuticals are excluded, many related inputs and medical items are included in the tariff lists. The table below summarizes key categories and whether they fall under the proposed tariffs:

Category	Examples	Tariff Status
Finished Veterinary Drugs	Pet antibiotics, vaccines, anesthetics, etc.	Excluded. Pharmaceutical products are omitted from the tariff lists to ensure medications remain untaxed.
Active Pharmaceutical Ingredients (APIs)	Raw drug ingredients (e.g. antibiotic powder, vitamin precursors)	Partially Included. The lists exclude “certain pharmaceutical inputs,” but not all. Some APIs and chemical precursors from China may incur a 25% tariff if not explicitly exempted. China supplies ~17% of U.S. API imports so tariffs on these could affect drug manufacturing costs.
Veterinary Medical Supplies	Syringes, needles, IV sets, surgical gloves, lab reagents	Included. Many medical consumables and devices are on the tariff list. For example, syringes and needles imported from China face added tariffs (25% or higher) under the proposal. Personal protective equipment like masks and gloves, and lab equipment (e.g. glass vials, test tubes) are also covered.
Animal-Derived Products for Pharma	Ingredients from animals (glands, enzymes, etc.) used in drug manufacturing; breeding materials	Included. Niche veterinary-related imports appear on the lists. For instance, animal glandular products used in pharmaceuticals and even bovine semen (used for breeding) are listed as tariffed items. These specialized items would face the standard tariff rate (e.g. 25%).
Diagnostic Devices & Equipment	Imaging machines, lab analyzers, dental tools	Included. General medical equipment is subject to tariffs unless exempted as “select medical goods.” Many devices (ultrasound machines, monitors, etc.) fall under electronics/medical apparatus categories that are tariffed (typically 25%). Only a few critical medical devices were excluded for public health reasons.

Official Trade Lists: The U.S. Trade Representative’s proposed tariff list (often called “List 4” in the China Section 301 case) explicitly covered nearly all remaining imports not yet tariffed, with exceptions for pharmaceuticals and certain medical goods.

This means veterinary medicines as finished drugs were carved out to avoid harming patients and animals. However, a wide range of related goods—chemicals, ingredients, and equipment—are explicitly included. The Federal Register notice confirms that “the proposed product list excludes pharmaceuticals, certain pharmaceutical inputs, select medical goods…”

implying that anything not in those exempt categories would be subject to the new tariffs. Items like “glands and other animal products… used in pharmaceutical products” and “veterinary supplies” by their tariff codes are on the list of affected goods

Additionally, recent tariff actions have targeted medical supplies: syringes, needles, respirator masks, and other healthcare items from China are slated for tariffs ranging from 25% up to 100%.

In summary, while your clinic’s bottled medications may not directly get a tariff, many supplies and the ingredients used to make those medications are impacted.

Impact on Imported Veterinary Products via U.S. Distributors

Many veterinary drugs and supplies used in the U.S. are manufactured abroad but sold through U.S.-based distributors. It’s important to understand that tariffs apply at the point of import – no matter if you buy from a U.S. distributor, the added cost from tariffs will trickle down. When a U.S. distributor or pharmaceutical company imports a product (say, a batch of suture materials or a bulk API for compounding) from a tariff-targeted country, they must pay the tariff (e.g. an extra 25% tax) upon entry. This added cost will almost certainly be passed along the supply chain to veterinary clinics and consumers.

U.S. veterinary distributors operate on thin profit margins and cannot easily absorb a 25% cost increase on imported products. For example, if a distributor imports surgical gloves at $100 per case, a 25% tariff would impose an additional $25 per case in taxes. The distributor would then raise the sale price to clinics to cover this. The Healthcare Distribution Alliance warns that broad tariffs on medical products will “be passed down to payers and patients” because neither distributors nor generic manufacturers can absorb such costs. In practice, a veterinary clinic might suddenly pay more for the same drug or IV fluid bag simply because it was imported and now carries a tariff.

Another consideration is distribution logistics. If tariffs cause a foreign supplier to cut or delay shipments (for instance, a manufacturer in China might redirect product to other countries to avoid the tariff), U.S. distributors could experience backorders. Even though you order from a domestic company, the supply chain behind the scenes may be disrupted, leading to longer lead times or shortages in certain vet medications or supplies. In short, buying through a U.S. distributor does not shield clinics from the effects of tariffs – the entire supply chain feels the impact, and clinics should prepare for higher prices and potential sourcing delays on imported items.

Implications for Small vs. Large Animal Practices

All veterinary sectors will feel some impact from these tariffs, but small animal clinics and large animal (livestock/equine) practices may face different challenges. Below we break down the potential effects on each, focusing on cost increases, drug shortages, and supply disruptions.

Small Animal Practices (Companion Animals)

Small animal clinics (serving pets like dogs, cats, etc.) typically purchase a wide variety of medications (antibiotics, pain meds, vaccines) and consumable supplies (syringes, catheters, bandages). Many of these products are produced globally. Cost increases due to tariffs will affect these clinics’ operating expenses. For example, if the price of an imported anesthetic agent rises, the clinic’s cost for each procedure goes up. Clinics might see incremental increases in the cost of routine supplies – a few dollars more for a bag of fluids or a set of needles – which add up over time. They may have to adjust pricing for services or absorb some costs to avoid pricing pet owners out of care. A key concern is that pet owners are sensitive to price changes in vet care; significant cost increases on medications or preventive products (like flea/tick or heartworm meds) could lead some clients to decline treatments or delay purchases.

Drug shortages in companion animal medicine can be particularly troublesome. If a foreign manufacturer of a generic drug (commonly used in pets) slows or stops shipments due to the tariffs or related trade tensions, clinics might struggle to obtain that drug. Unlike human hospitals, veterinary clinics often keep only a small stock of less-used medications, so a backorder can leave no alternatives. In some cases, vets can substitute a human-equivalent drug or compound a medication, but this can involve regulatory hurdles. For critical pet medicines with no easy substitute (for instance, a specific chemotherapy drug for canine cancer or a specialized anesthetic), a shortage could delay or jeopardize treatments. Even basic supplies like IV fluids or injectable antibiotics could run low if supply chains are disrupted. Clinics might recall the pandemic period when personal protective equipment was scarce for veterinary staff – a tariff-driven supply disruption could create similar challenges. The American Hospital Association has noted that shortages of essential items (like protective gloves or masks, largely made in China) can compromise healthcare workers’ safety; in a vet clinic, inadequate PPE or supplies means staff and animal safety is at risk during procedures.

Supply chain disruptions may hit small clinics harder because they often lack large storage capacity or alternative suppliers. A big change in a product’s availability or a delayed shipment can mean a small clinic runs out of an item until the next order arrives. Large corporate veterinary chains might have centralized purchasing that can reroute supplies, but an independent animal hospital might rely on one distributor. If that distributor has trouble importing a product, the clinic has few options. Small practices should be prepared for longer lead times on orders and consider keeping slightly higher minimum stock of critical items. In summary, companion animal practices will likely face moderate cost increases per item, need to manage client expectations around possible price hikes, and proactively plan for any intermittent shortages of drugs or supplies caused by the tariffs.

Large Animal Practices (Livestock and Equine)

Large animal veterinarians, including those serving farms, ranches, and stables, will experience tariff impacts in ways that reflect the scale and economics of animal agriculture. Cost increases can have an outsized effect on large animal medicine because of the volumes involved. For instance, a bovine practitioner might purchase antibiotics or dewormers by the case to treat a herd. A 10–25% price jump on a bulk order of cattle vaccine could mean a rancher’s annual herd health program becomes significantly more expensive. These added costs may be passed on to the livestock owner (affecting their profitability) or absorbed by the vet practice if they try to keep client prices stable. In either case, higher prices for vaccines, medications, or even breeding supplies (like imported bovine semen or hormones) strain the economics of food animal production. It’s possible that some farmers might delay or reduce preventive health measures for herds if costs spike, which could lead to longer-term animal health issues. Large animal vets often work in rural areas where clients are very cost-sensitive, so tariff-driven price increases can directly affect herd health decisions.

Drug shortages or delays are particularly worrisome for large animal practice because there are often fewer alternative products approved for livestock. If an imported component for a critical livestock drug (for example, a specific vaccine antigen or a long-acting antibiotic) becomes unavailable, the options to treat or prevent disease in a herd may be limited. Unlike small animals, one cannot readily substitute a human medication in food animals due to strict residue and safety regulations. A shortage in this sector could, for example, impair a veterinarian’s ability to respond to a disease outbreak in cattle or pigs. Moreover, some large animal pharmaceuticals are seasonal (e.g., vaccines given ahead of spring calving, or medications for summer parasite control); a disruption at the wrong time of year could mean an entire season is missed. Supply chain disruptions also threaten livestock operations’ timelines – if a shipment of porcine reproductive vaccine is delayed at a port due to tariff complications, a swine vet might miss the window to immunize pigs, risking an outbreak. The American Hospital Association letter highlighted that U.S. healthcare depends heavily on imports for critical drugs like antibiotics. This is true in animal health as well – many common veterinary antibiotics for farm animals are generic drugs produced overseas. Any constraint on these imports (whether due to cost or bureaucratic slowdown) could lead to new or worsened shortages of important veterinary medications, as distribution experts have cautioned.

Large animal practices also rely on equipment and supplies that are subject to tariffs. Items like surgical instruments, diagnostic test kits, even farm equipment parts (needles for automatic vaccinators, test tubes for lab work, etc.) often come from international suppliers. If these become pricier or scarce, it can disrupt routine veterinary services on farms. Field veterinarians may need to conserve supplies or find makeshift solutions (for example, reusing certain durable items longer than normal) if replacements are slow to arrive. In addition, large animal vets often work closely with industries that have tight profit margins (dairy, beef, poultry), so any extra cost due to tariffs might indirectly pressure vets to minimize fee increases for their services. Overall, livestock and equine practitioners face a risk of substantial cost increases on high-volume supplies, potential shortages of specialized medications, and timing issues in the supply chain – all of which could impact animal health and farm productivity if not managed carefully.

(Table: Comparative Impact on Small vs. Large Animal Practices)

Aspect	Small Animal Clinics	Large Animal Practices
Typical Imports	Pet medications (often human generics), pet vaccines, surgical/PPE supplies (gloves, syringes), pet nutrition supplements.	Livestock vaccines, antibiotics and hormones in bulk, breeding materials (semen, embryos), feed additives (vitamins, premixes), farm-use supplies.
Cost Sensitivity	Clients (pet owners) pay out-of-pocket; even minor price hikes can affect willingness to pursue non-urgent treatments. Clinics may try to absorb small increases to maintain client goodwill.	Livestock producers work on thin margins; a significant increase in vet care costs can affect farm profitability. Price hikes on herd health programs may force producers to cut optional preventative care.
Alternatives if Shortage	Often can substitute with human medicines or compounded drugs for pets if an approved vet drug is unavailable (within regulatory limits). Some flexibility to improvise (e.g. using a different antibiotic class for a pet infection).	Very limited alternatives – food animal drugs have strict approvals. Cannot easily use human drugs in food animals due to safety regulations. If a specific vaccine or drug is short, vets may have no effective substitute and must go without or use less optimal measures.
Supply Chain Resilience	Typically rely on one or two distributors; smaller order volumes. Less able to demand priority from suppliers. May join buying groups or stockpile a little extra of critical items.	Often plan purchases seasonally and in bulk; may have contracts with suppliers for large quantities. Can sometimes source from multiple distributors if one runs out. However, bulk needs mean they feel port or shipping delays acutely (e.g. a delayed pallet of vaccine affects thousands of animals).
Impact of PPE/Equipment	Shortages of basics (gloves, needles, IV sets) can slow down procedures and reduce caseload (e.g. limit surgeries if anesthetic supplies low). Pet surgeries and exams might be rescheduled if supplies run short.	Shortage of farm vet supplies (e.g. artificial insemination gloves, pregnancy test kits) can disrupt herd management schedules. Inadequate PPE can expose farm vets to zoonotic disease risk. Critical equipment delays (e.g. replacement parts for portable x-ray) can halt important diagnostic work in the field.

Key takeaway: Small animal clinics will primarily grapple with managing higher costs on everyday items and reassuring clients, whereas large animal practices must contend with ensuring herd-level treatments remain available and affordable amid a more strained supply chain. Both sectors could see drug shortages or delays, but the ramifications differ – a pet’s treatment might be postponed, while a herd’s health issue could have food supply or animal welfare implications.

Preparing for Tariff Impacts: Guidance for Veterinary Clinics

With potential tariffs on the horizon, veterinarians and clinic managers should take proactive steps to mitigate disruptions. Preparation can help ensure continuous care for animals and financial stability for the practice. Here are specific strategies to consider:

Audit and Bolster Your Inventory: Review your current inventory of medications and key supplies. Identify items critical to your practice that are imported or have few suppliers. Consider stocking up slightly on essentials that could be hit by tariffs or shortages – for example, order an extra month or two supply of important drugs (keeping in mind their shelf-life) before new tariffs take effect. Avoid hoarding but build a reasonable buffer for high-priority items so you’re not caught short if costs spike or availability drops.

Diversify Sourcing and Consider Alternatives: Reach out to multiple distributors or manufacturers to explore backup sources for important products. If you typically rely on one supplier for an item, find out if there are alternative brands or generic versions from non-tariffed countries. For instance, if a particular suture material from Country X might become expensive, see if an equivalent from Country Y is available. Consider domestic suppliers or manufacturers for certain goods, even if the base price is higher – it might become comparatively cost-effective if imported prices jump. In cases of drug shortages, be prepared to work with compounding pharmacies to create needed formulations, or use approved alternative drugs (e.g., human-labeled drugs used off-label in animals) where appropriate. Always ensure any alternative sourcing complies with veterinary regulations (such as FDA extra-label use rules or compounding laws).

Communicate with Distributors and Stay Informed: Proactively contact your veterinary product distributors or sales representatives to ask how they are handling the proposed tariffs. They may have insight into which products could see price increases or delays. Subscribe to updates from industry groups (AVMA, veterinary pharmacy associations) about drug shortage alerts or tariff developments. If certain products are going on allocation or backorder, you want to know early. Maintain an open dialogue with your suppliers – let them know which items are most crucial to your practice so they can keep you in mind if supply gets tight. Being an informed customer can sometimes get you early warnings or priority allocations.

Financial Planning and Pricing Strategy: Tariffs and resulting cost increases will affect your clinic’s bottom line, so plan accordingly. Update your budget projections for pharmaceuticals and supplies – for example, assume a 25% cost increase on at-risk items in your calculations. Identify areas where you can absorb costs and where you may need to adjust pricing. It may be necessary to raise fees for certain services or medications; do this judiciously and communicate clearly with clients about why. Consider locking in prices or contracts before tariffs hit (some suppliers might honor current pricing for orders placed now). Also evaluate if you can bundle purchases with other clinics (group purchasing organizations) to gain bulk discounts that help offset tariff costs. Large practices might hedge by buying larger quantities now to use over the coming year (again, watch expiration dates and storage capabilities). Essentially, make sure your practice’s finances account for the likelihood of higher supply expenses in the near future.

Client Communication and Education: It’s important to prepare your clients – whether pet owners or livestock producers – for possible impacts. Proactively communicate with clients if you anticipate changes. For pet owners, you might put up a notice or send an email explaining that due to global supply issues and tariffs, the cost of some medications or services may increase. Emphasize that your clinic is taking steps to ensure availability of care and that any price adjustments are to maintain quality and access. For farm clients, have conversations about securing the health supplies they’ll need for the season; encourage them to order critical vaccines or medications early with you. Clients will appreciate transparency, and understanding the broader context (that this is a nationwide issue, not a clinic-level decision) can make them more supportive. In some cases, you may need to discuss alternative treatment plans if a preferred product becomes too costly or unavailable – involve clients in those decisions early so they feel prepared.

Regulatory Considerations and Reporting: Stay aware of regulations that come into play if usual products become scarce. For example, if you must use an alternative drug that’s not labeled for that species, ensure it’s done under the Animal Medicinal Drug Use Clarification Act (AMDUCA) guidelines (for extralabel use) and document it. If compounding from bulk chemicals becomes necessary due to a shortage of an approved drug, make sure you follow FDA and state veterinary pharmacy rules. It’s also wise to report any serious drug shortages you encounter to the FDA’s Center for Veterinary Medicine (CVM) or through AVMA channels. Reporting shortages helps regulators understand the scope and potentially take action (such as allowing emergency imports or working with manufacturers to ramp up production). Engage with professional associations – they may be advocating for veterinary exemptions or solutions (for instance, urging tariff exemptions for certain medical products) and can provide updated guidance. By staying within legal and ethical bounds during any workaround measures, you protect your license and ensure animal safety while managing the supply crisis.

Optimize Use of Supplies: Finally, encourage a culture of efficiency in your practice. In times of uncertainty, small measures like avoiding waste take on added importance. Ensure your team is mindful when using disposable supplies – open only what is needed, and try to use every dose of a medication vial to the fullest (where medically appropriate) rather than discarding unused portions. Review your appointment scheduling to align with supply usage (for example, batch surgeries that use certain high-cost supplies on specific days). While these steps won’t eliminate the impact of tariffs, they can stretch your inventory and budget just a bit further when every little bit helps.

By implementing these strategies, veterinarians and clinic managers can better weather the potential cost increases, drug shortages, and supply disruptions that the new tariffs might bring. The goal is to maintain continuity of care for animal patients and sustain the financial health of the practice. Preparation, flexibility, and communication are key. As the situation evolves, stay alert to new information – trade policies can change, and there may be updates (such as tariff exemptions for critical drugs) that alter the outlook. In the meantime, taking the above steps will put your veterinary practice in the best possible position to continue providing quality care under the challenges that the current round of proposed tariffs may pose.