How Life Sciences Companies Can Mitigate the Impact of U.S. Tariffs

Allison Raley and Mike Burke, partners in the Global Trade & Sanctions practice, published an article in Corporate Compliance Insights discussing how life sciences companies can adapt and respond to constantly evolving tariff pressures.

The life sciences industry depends on complex, multinational supply chains, so the recent tariffs imposed under Section 301 (targeting Chinese-origin goods) and Section 232 (steel and aluminum), among other “reciprocal tariffs,” have introduced significant cost burdens for companies in the space.

Companies can mitigate the effects of these tariffs by first understanding where they’re exposed, the attorneys explained. A comprehensive audit of import activity should be standard, and include the following: HTS classification review, country-of-origin mapping, tariff engineering opportunities, and free-trade agreements and preferential program utilization.

“These strategies should not be siloed within trade compliance,” Allison and Mike said. “They require coordinated input from procurement, logistics, regulatory affairs and supply chain planning.”

In addition to front-end tariff strategy, they recommend utilizing post-summary corrections (“PSCs”) and duty drawback, as well as means for duty recovery. Both strategies require meticulous, accurate documentation systems, but demonstrate a high level of “regulatory maturity” when done correctly. While PSCs and duty drawback serve different functions, the tools reward companies that have invested in accurate data as well as organization-wide coordination and visibility.

“By identifying overpayments, recovering refundable duties and preventing classification or origin errors, the compliance team can deliver direct financial value while reinforcing regulatory integrity,” Allison and Mike said. “In an era where tariffs are increasingly used as policy levers, the ability to adapt and respond is not just strategic — it is imperative.”

To read the full article, please click here.