Microbix Reviews U.S. Tariffs on Canadian Diagnostic Reagents
Microbix Biosystems is reviewing the potential effects of new U.S. tariffs on Canadian diagnostic and laboratory reagents, with certain QAPs products appearing to fall under the affected codes.
Microbix Biosystems Inc. (TSX:MBX)(OTCQX:MBXBF) is reviewing new U.S. tariffs affecting Canadian products in the diagnostic and laboratory reagent categories. The measures are scheduled to apply at a rate of 50% to Canadian products entering the United States from 12:01 a.m. on October 30, 2026.
#Diagnostic products appear among affected categories
The tariff changes were redirected on October 23 from several previously listed product groups to categories that include chemicals, flooring, appliances, valves, electrosurgical instruments, and diagnostic and laboratory reagents.
Microbix said certain products, including its QAPs™ quality assessment products, appear to fall within the relevant product codes. The company is assessing how the changes may affect its business and customers.
The U.S. Government will collect the tariff from the buyer or importer bringing the products into the country. Microbix said this would raise costs for U.S. end-users of the affected products.
The company believes its QAPs™ products are not easily replaced by U.S.-manufactured alternatives because of their specialised nature and the extensive validation required for use in customers’ diagnostic testing workflows. Microbix also said that, if the tariffs remain in place over the longer term, U.S.-based customers may ask it to share the effect of the charges or assess domestic manufacturing options.
For the nine months ended June 30, 2026, Microbix reported QAPs™ sales of C$ 4.2 million. An estimated C$ 3.4 million of those sales went to U.S.-based clients, while total revenue from U.S.-based clients was C$ 5.5 million during the same period.
Microbix cited remarks from U.S. President Donald Trump on October 25 that he expected a revised trade agreement with Canada to be reached “pretty soon”. The company also referred to Canadian Prime Minister Mark Carney’s statement on October 26 that any progress had occurred as the United States moved closer to Canada’s position.
Microbix said it will update its forward-looking information after it can evaluate the nearer- and longer-term effects of the tariffs, including whether the measures are reduced or eliminated through Canada-U.S. trade negotiations. The company said these forward-looking statements reflect management’s current views and are subject to uncertainty, with actual results potentially differing materially.
Based in Mississauga, Ontario, Microbix develops biological products for diagnostic testing, laboratory quality assurance, and disease management. Its portfolio includes proprietary antigens, QAPs™ products, QUANTDx™ reference materials, Kinlytic® urokinase, and DxTM® reagents.
Microbix said it has 120 employees and fiscal 2025 revenues of C$18.6 million. Its products are available in more than 30 countries through international distribution partners, and its antigens are used by approximately 100 diagnostics manufacturers.
Microbix is reviewing new U.S. tariff changes affecting Canadian diagnostic and laboratory reagents.
A 50% tariff is scheduled to apply to covered Canadian products entering the United States from 12:01 a.m. on October 30, 2026.
Certain QAPs™ products appear to fall under the relevant diagnostic and laboratory reagent codes.
U.S.-based clients accounted for an estimated C$ 3.4 million of QAPs™ sales during the nine months ended June 30, 2026, while total U.S.-based client revenue was C$ 5.5 million.
Microbix said it will reassess the position as the tariff effects and Canada-U.S. trade negotiations develop.
Microbix Biosystems Inc. announced on October 28, 2026 that it is reviewing the effects of recent U.S. tariff changes on Canada. The changes redirected tariffs to include chemicals, flooring, appliances, valves, electrosurgical instruments, and diagnostic and laboratory reagents, with certain Microbix products such as QAPs™ appearing to be included under the relevant product codes.
The tariffs are to apply to Canadian products entering the U.S. as of 12:01 a.m. on October 30, 2026. The announced rate is 50%.
Microbix Biosystems Inc. said that certain products, such as its QAPs™, appear to be included under product codes related to diagnostic and laboratory reagents. The tariffs were redirected on October 23 to target several product categories, including diagnostic and laboratory reagents.
The U.S. Government will collect the tariffs from the buyer or importer bringing the products into the country. Microbix said this will increase costs for U.S. end-users of those products.
For the nine months ended June 30, 2026, Microbix Biosystems Inc. reported QAPs™ sales of C$ 4.2 million, of which an estimated C$ 3.4 million were to U.S.-based clients. Total revenues derived from U.S.-based clients were C$ 5.5 million over the same period.
Microbix Biosystems Inc. believes its QAPs™ products are not readily substituted with U.S.-manufactured goods because of their sophisticated nature and the extensive validation required in client diagnostic testing workflows. The company said that if the tariffs persist over the longer term, U.S.-based customers may ask it to share the impact or evaluate using domestic manufacturers.
Microbix Biosystems Inc. said it will update its forward-looking information once it can assess the nearer- and longer-term impacts of the tariffs and whether they are reduced or eliminated through ongoing trade negotiations between Canada and the United States. The company also said it remains committed to continuing to grow revenues by expanding the number and scope of client relationships across the United States, Europe, and other geographic or political regions.
Microbix Biosystems Inc. noted that on October 25, U.S. President Donald Trump expressed an expectation that a revised trade deal would be reached with Canada “pretty soon”. The company also cited Canadian Prime Minister Mark Carney's October 26 statement that progress had been made to the extent that the U.S. was coming closer to Canada's position.
Microbix Biosystems Inc. is a Canadian life sciences company working through biological products that support diagnostic testing, laboratory quality assurance, and disease management. Its products include proprietary antigens, QAPs™ quality assessment products, and QUANTDx™ reference materials, alongside other products including Kinlytic® urokinase and DxTM® reagents.
Microbix Biosystems Inc. said it has 120 employees and fiscal 2025 revenues of C$18.6 million. Its products are available in more than 30 countries through international distribution partners, and its proprietary antigens are used by approximately 100 diagnostics manufacturers.
Microbix Biosystems Inc. trades on the TSX under TSX:MBX and on the OTCQX under OTCQX:MBXBF.
Microbix Biosystems Inc. will continue reviewing the tariff effects and will update its forward-looking information once it is able to assess the nearer- and longer-term impacts. That update will also consider whether the tariffs are reduced or eliminated as a result of the ongoing Canada-U.S. trade negotiations.