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, USA's tariff on China goods has now increased to 145 percent, with an 84 percent reciprocal tariff applied to China imports from 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.

"Tariffs continue to shake procurement processes and supplier relationships, and businesses must remain agile as economic pressures build," said James Bouchard, Associate Partner of the Center of Excellence at LogicSource. "Our latest report offers practical strategies to help companies navigate shifting tariff policies. It outlines proven methods for building resilience against supply chain disruptions and rising costs. Taking timely, strategic action is key to staying ahead of market volatility, improving efficiency, and strengthening supplier networks for the long term."

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.

"Tariffs are creating significant economic pressure across key sectors, including manufacturing, retail, and healthcare," said Bouchard. "Business leaders must stay flexible and proactively manage risk by minimizing exposure and limiting disruption. As tariff policies continue to shift, we're actively monitoring the changes and advising organizations to reassess their contracts, supplier networks, and spending to stay ahead."

To access the full report, visit https://logicsource.com/lp/tariff-impact-analysis-strategic-implications-for-indirect-spend.

About LogicSource
The innovative leader in procurement services and technology, LogicSource is purpose-built to drive profit improvement, mitigate risk, and ensure supply chain continuity through better buying. LogicSource focuses exclusively on the sourcing and procurement of indirect goods and services, which typically represent 20 percent of an organization's revenue and the area of greatest spending inefficiency. These include complex categories like marketing, packaging, corporate services, facilities, information technology, distribution and logistics and more, for which organizations often lack the capacity, focus and scale to achieve best-in-class buying. Unlike traditional advice-based consultants, LogicSource is a purpose-built buying utility with assets that are configurable to their clients' needs and ready to deploy. By combining decades of sourcing and procurement expertise, superior market intelligence, cross-portfolio spending leverage, and their OneMarket^® Source-to-Pay technology, LogicSource executes customized solutions that deliver immediate savings and sustainable value. For more information visit www.logicsource.com.

Contact: Erica Olenski, 678-504-6786, erica.olenski@finnpartners.com

SOURCE LogicSource