Washington, D.C.— Today, the Natural Products Association (NPA) released a comprehensive economic analysis, demonstrating that the Annex II tariff exemptions granted under the 2025 reciprocal tariff system have generated between $218 million and $247 million in direct cost savings for the dietary supplement industry over just 69 days. This study highlights the critical role these exemptions play in stabilizing supply chains, preserving market growth, and supporting American consumers’ access to essential health products.
The Annex II exemptions, implemented by the Trump administration in April 2025, strategically excluded key dietary supplement ingredients from a baseline 10% ad valorem tariff, recognizing their non-pharmaceutical status, high import dependency (over 60%) and significant consumer impact. Notably, ingredients such as Coenzyme Q10 (CoQ10), creatine and L-theanine were protected, preventing severe supply disruptions and price surges.
NPA representatives met with White House officials in the spring of 2025, stressing the importance of the dietary supplement supply chain.
Key report findings:
- $5.97 million monthly savings on CoQ10 alone, stabilizing retail prices and ensuring affordability for consumers relying on cardiac and wellness formulations.
- The exemptions created an 18- to 24-month window for industry leaders to invest in domestic production, diversify supply sources, and pursue long-term legislative reforms.
- The study utilized customs data, price elasticity models and industry surveys to quantify savings and forecast future scenarios, providing actionable insights for manufacturers and policymakers.
“We are proud that our sustained advocacy and strategic engagement with the Administration have delivered tangible economic relief and safeguarded consumer access to natural health products,” said Dr. Daniel Fabricant, President and CEO of the Natural Products Association. “These exemptions not only provide immediate cost savings but also offer a critical opportunity to strengthen domestic manufacturing and modernize trade policies for the dietary supplement industry.”
The full report, “Economic Impact of Annex II Tariff Exemptions on the Dietary Supplement Industry: A Comprehensive Analysis of Cost Savings from April – June 2025,” is available on the NPA website here.
