Tariff news puts industry on edgeTariff news puts industry on edge

President Trump announced new 25% tariffs on goods from Canada and Mexico, and 10% on Chinese goods. The supplement industry, which is highly reliant on Chinese supply, awaits details to assess the impact.

Hank Schultz, Senior Editor

January 31, 2025

2 Min Read
Pres. Trump has announced 25% tariffs on goods imported from Canada and Mexico and 10% for China. The tariffs are set to take effect on Feb. 1.

At a Glance

  • Trump announced new tariffs to go into effect on Feb. 1. 
  • The tariffs apply to the three biggest trading partners of the U.S.: Mexico, China and Canada.
  • Some supplement ingredient importers are already paying tariffs leftover from the Biden Administration. 

News that President Trump will install steep new tariffs tomorrow has put the dietary supplement industry on edge. Many popular ingredients are imported, particularly from China, and in many cases there are no alternatives to these. 

The news was announced today that the United States will place a 25% tariff on goods coming from Mexico and Canada and 10% on Chinese goods starting tomorrow. 

The three counties are the largest trading partners of the U.S. According to data cited by NBC News, the U.S. imported $466.6 billion worth of goods from Mexico in 2024. For China and Canada, the figures were $404.4 billion and $377.2 billion, respectively. Mexico passed China as the U.S.’ biggest trading partner in mid 2023. 

White House press secretary Karoline Leavitt said the reason for the tariffs was “the illegal fentanyl that they have sourced and allowed to distribute into our country which has killed tens of millions of Americans.” 

In an interview with NBC, Ontario prime minister Doug Ford said, “In a trade war between the United States and Canada only China wins.” 

Ford has emerged as Canada’s most influential politician after embattled national prime minister Justin Trudeau announced he would step down in March. 

Angst within industry 

Robert Marriott, director of regulatory affairs for the American Herbal Products Association, said details of the new tariff plan were still lacking. Earlier tariff regimes included some exemptions, which could apply to the ingredients that go into health-supporting products like dietary supplements. 

Related:Natural Grocers touts sustainability in face of headwinds

Nevertheless, he said, “We’re concerned because many herbal ingredients are sourced from China. In some cases, there are no alternatives.” 

Daniel Fabricant, Ph.D., president and CEO of the Natural Products Association, said the angst within the industry is real. 

“Like every time, initially the worry is about the cost and how it will get passed on. We’ll have to wait for any exemptions to see what this means for the consumer,” he said. 

Fabricant said the new tariffs could be a time for introspection within the industry and a chance to take some real steps toward reforming the supply chain. 

“Most of the letter vitamins you can’t get anywhere else but China. We have enabled a monopoly. Instead of relying 95% on China for vitamin C, what about South Korea as a trading partner, for example?” he added. 

What about the tariffs already in place? 

Wilson Lau, president of Nuherbs, which imports a wide variety of botanical ingredients from China, said it’s hard to know what the effects will be until more detail is available. His company, like many others, has already been dealing with tariffs on Chinese goods. 

Related:Tariff tornado far from over, Israelsen predicts

“It’s not shocking, since he telegraphed the tariffs during his inauguration,” Lau said. 

“If there is already a 25% tariff on goods like ginseng, does that mean 25% plus an additional 10%? Or since the 25% is greater, would the new tariff not apply? And what’s the effective date?  Will it just be announced on the 1st and then go into effect on the 14th?” 

 

 

About the Author

Hank Schultz

Senior Editor, Informa

Hank Schultz has been the senior editor of SupplySide Supplement Journal (formerly Natural Products Insider) since early 2023. He can be reached at [email protected]

Prior to joining the Informa team, he was an editor at NutraIngredients-USA, a William Reed Business Media publication.

His approach to industry journalism was formed via a long career in the daily newspaper field. After graduating from the University of Wisconsin with degrees in journalism and German, Hank was an editor at the Tempe Daily News in Arizona. He followed that with a long stint working at the Rocky Mountain News, a now defunct daily newspaper in Denver, where he rose to be one of the city editors. The newspaper won two Pulitzer Prizes during his time there.

The changing landscape of the newspaper industry led him to explore other career paths. He began his career in the natural products industry more than a decade ago at New Hope Natural Media, which was then part of Penton and now is an Informa brand. Hank formed friendships and partnerships within the industry that still inform his work to this day, which helps him to bring an insider’s perspective, tempered with an objective journalist’s sensibility, to his in-depth reporting.

Harkening back to his newspaper days, Hank considers the readers to be the primary stakeholders whose needs must be met. Report the news quickly, comprehensively and above all, fairly, and readership and sponsorships will follow.

In 2015, Hank was recognized by the American Herbal Products Association with a Special Award for Journalistic Excellence.

When he’s not reporting on the supplement industry, Hank enjoys many outside pursuits. Those include long distance bicycle touring, mountain climbing, sailing, kayaking and fishing. Less strenuous pastimes include travel, reading (novels and nonfiction), studying German, noodling on a harmonica, sketching and a daily dose of word puzzles in The New York Times.

Last but far from least, Hank is a lifelong fan and part owner of the Green Bay Packers.

Subscribe for the latest consumer trends, trade news, nutrition science and regulatory updates in the supplement industry!
Join 37,000+ members. Yes, it's completely free.

You May Also Like