LogicSource Releases Updated Tariff Analysis Report with Category-Specific Insights for Businesses Navigating Economic Uncertainty
WESTPORT, Conn., April 10, 2025 /PRNewswire/ — LogicSource, the leader in procurement services and technology, announced the release of its updated Q2 2025 Tariff Impact Analysis. This analysis provides a fourth update to the report and builds upon LogicSource’s comprehensive tariff analysis released in January, offering refreshed information and guidance for businesses navigating the complex, uncertain, and rapidly changing global economy and trade environment. LogicSource encourages companies to take critical steps, focused on indirect spend, to reduce procurement vulnerabilities, mitigate disruptions, and secure business operations.
The Q2 report highlights the rapidly evolving tariff landscape, including the implementation of the current administration’s baseline 10 percent tariff and the recent 90-day pause on reciprocal tariffs for most countries. Notably, the USA’s tariff on China goods has now increased to 145 percent, with an 84 percent reciprocal tariff applied to China imports from the USA. These ongoing changes underscore the importance of staying current, as shifting policies can significantly impact sourcing decisions and overall costs.
In the report, LogicSource outlines sector-specific insights and critical mitigation strategies that all organizations must implement to stay stable as trade wars and economic upheaval disrupt operations and fiscal sustainability.
LogicSource’s report highlights critical considerations across sectors, including retail, healthcare, manufacturing, and consumer packaged goods. Below are industry-specific recommendations from the report for procurement and supply chain leaders:
- Retail: Renegotiate supplier contracts and re-evaluate sourcing strategies. Retailers that rely heavily on imports from Asia may be particularly vulnerable to cost increases and margin pressure due to tariffs. However, many organizations are too quick to accept these pass-through costs. LogicSource has demonstrated that, with the right sourcing strategies, planning, and supplier communication, these tariff-related increases can often be significantly reduced or even avoided entirely. Retailers should carefully evaluate supplier alternatives and implement strategic approaches to mitigate exposure, especially in price-sensitive categories.
- Healthcare: Prepare for supply disruptions, especially for essential goods like medical supplies. Health systems should consider the expanding domestic manufacturing market for medical supplies. A significant portion of medical equipment, surgical instruments, diagnostic technologies, and pharmaceuticals is currently sourced internationally, rendering organizations vulnerable to tariffs and procurement challenges. These issues are especially pronounced for non-profit and rural facilities, which often operate with limited resources.
- Manufacturing/CPG: Consider sourcing and pricing strategies as costs of raw materials increase.
Key packaging and components manufacturers in China, India, and EU member states now face tariffs ranging from 20-34 percent. These cost pressures impact upstream production and downstream distribution and will ultimately require agile pricing strategies to limit consumer exposure.
To access the full report, visit https://logicsource.com/lp/tariff-impact-analysis-strategic-implications-for-indirect-spend.
