Tariff Breakdown
A tariff is a tax imposed by the government on imported goods. It can impact the cost of raw materials, ingredients, and finished products in the supplement and natural products industry. Tariffs can also affect supply chains, pricing, and overall market competitiveness, particularly when sourcing botanical extracts, amino acids, or other key supplement ingredients from international suppliers.
To anticipate cost fluctuations and regulatory challenges, NPA members must stay informed on tariffs affecting dietary supplements, vitamins, minerals, and other natural health products. Changes in trade policies, including those affecting imports from China, India, and other major ingredient suppliers, may lead to increased costs or supply chain disruptions.
Regulatory Agencies Involved
To maintain good standing and ensure compliance, the Natural Products Association (NPA) will need to engage with multiple government agencies, including:
- U.S. Trade Representative (USTR) – Oversees trade policy and negotiations, including tariff adjustments and exemptions.
- Customs and Border Protection (CBP) – Enforces tariff classifications and ensures proper import declarations.
- U.S. Food and Drug Administration (FDA) – Regulates dietary supplements and ensures imported products comply with safety and labeling requirements.
- Department of Commerce (DOC) – Assesses trade policies that impact the supplement industry and provides guidance on tariffs.
- International Trade Commission (ITC) – Investigates tariff-related trade issues and potential industry harm.
By working with these agencies, the NPA can advocate for fair trade policies and tariff relief where necessary, ensure that members remain compliant, and minimize business disruptions.
Current Administration
President Donald J. Trump’s goals for the country during his administration seem to involve bringing about and talking about new tariffs as a principle tool in his endeavors.
Tariff Update: September 12, 2025
On September 5, 2025, President Trump signed an Executive Order modifying the scope of reciprocal tariffs and establishing procedures for implementing trade and security agreements. This order updates Annex II to Executive Order 14257, which governs exemptions from reciprocal tariffs, and creates new frameworks for future trade agreements with foreign partners. The modifications became effective September 8, 2025, for goods entered for consumption and include updates to the Harmonized Tariff Schedule that may impact supplement ingredient sourcing and finished product costs.
The Executive Order also establishes new procedures for implementing both framework agreements and final agreements with trading partners, potentially offering zero percent reciprocal tariff rates for certain products that cannot be grown, mined, or produced in sufficient quantities domestically, including certain agricultural products and non-patented pharmaceutical articles. NPA members should evaluate how these changes may affect their supply chains and sourcing strategies, particularly for imported raw materials and ingredients. For complete details on the tariff modifications and their implications, please review the official White House release at:
Tariff Update – August 6, 2025
Trump Administration Implements Historic Tariff Overhaul: August 2025
Summary
The past few days have seen unprecedented trade policy changes affecting over 70 countries, with tariff rates ranging from 10% to 50%. All actions utilize emergency powers under the International Emergency Economic Powers Act (IEEPA) or Section 232 authority.
Key Statistics:
- 70+ countries with new specific tariff rates
- $800 duty-free threshold eliminated (effective Aug 29)
- Average tariff rate now 18.3% – highest since 1934
Major Tariff Actions
- Country-Specific Reciprocal Tariffs (Effective August 7, 2025)
Executive Order: “Further Modifying the Reciprocal Tariff Rates”
Authority: IEEPA
Key Rates for NPA Supply Chains:
- India: 25% (with threats of substantial increases)
- European Union: 15% floor tariff (special provisions)
- Japan/South Korea: 15%
- Indonesia/Philippines/Vietnam/Thailand: 19-20%
- Switzerland: 39% (highest for developed economy)
- China: 30% (temporary truce expires Aug 12)
EU Special Provision: If existing MFN rate < 15%, total becomes 15%. If MFN ≥ 15%, no additional tariff.
- India Tariff Escalation (August 5-6, 2025)
Current Status: 25% tariff with immediate threat of “substantial” increases
Reason: India’s purchase of Russian oil
Trump Statement (Aug 5): “I’m going to raise that very substantially over the next 24 hours”
- Brazil Emergency Tariffs (Effective August 6, 2025)
Rate: 50% total (10% reciprocal + 40% additional under national emergency)
Key Exclusions:
- Orange juice (major Brazilian export)
- Some agricultural products
- Raw materials
- Section 232 Copper Tariffs (Effective August 1, 2025)
Rate: 50% on semi-finished copper products
Impact: Affects supplement manufacturing equipment, packaging machinery, and facility infrastructure
- De Minimis Exemption Elimination (Effective August 29, 2025)
Previous: $800 duty-free threshold
New: No duty-free threshold for most shipments
Postal Network: $80-$200 per item or applicable ad valorem
Critical Impact: Eliminates duty-free status for small supplement shipments, particularly affecting e-commerce and sample programs.
- Anti-Circumvention Enforcement (Effective August 7, 2025)
Penalty: 40% additional tariff on transshipped goods
No Mitigation: Unlike previous policies, no relief available
Enforcement: CBP to publish bi-annual lists of circumvention countries/facilities
Sector-Specific Impacts for Natural Products
Botanical Extracts & Herbal Ingredients
- India (25%+ and rising): Major supplier of turmeric, ashwagandha, boswellia, guduchi
- China (30%): Ginseng, ginkgo, green tea extracts
- European suppliers (15%): Standardized herbal extracts
Vitamins & Minerals
- India (25%+): B-vitamins, vitamin D precursors
- China (30%): Vitamin C, various mineral compounds
- EU (15%): Specialized vitamin formulations
Packaging & Manufacturing
- Copper tariffs (50%): Manufacturing equipment, facility infrastructure
- Various countries: Bottles, caps, labels subject to country-specific rates
Raw Materials
- Multiple origins: Costs increasing across supply chain due to broad tariff application
- Stricter origin verification requirements
- Enhanced transshipment monitoring
- Bi-annual circumvention facility listings
Current Negotiations & Extensions
Active Negotiations
- Mexico: 90-day extension granted, 25% rate maintained
- China: Truce expires August 12, possible extension under discussion
Recently Completed Frameworks
- European Union: 15% rate with $750B energy purchases commitment
- Japan: 15% rate with $550B US investment commitment
- South Korea: 15% rate agreement reached
- Indonesia/Philippines/Vietnam: 19-20% rates established
Looking Ahead
Key Dates
- August 7: Country-specific tariffs take effect
- August 12: China truce expiration
- August 29: De minimis exemption elimination
- October 5: Transition period ends for in-transit goods
Ongoing Section 232 Investigations
- Pharmaceuticals
- Semiconductors
- Processed critical minerals
- Timber and lumber
NPA Resources & Support
The Natural Products Association continues monitoring these rapidly evolving trade policies and their impact on our industry. Members are encouraged to:
- Stay informed through regular NPA communications
- Engage in advocacy efforts to protect industry interests
- Consult trade experts for company-specific guidance
- Participate in industry discussions on compliance strategies
For the most current information and member resources, visit npanational.org/tariffs.
WHITE HOUSE OFFICIAL SOURCES (6)
- Fact Sheet: President Donald J. Trump Continues Enforcement of Reciprocal Tariffs and Announces New Tariff Rates
- FURTHER MODIFYING THE RECIPROCAL TARIFF RATES (Executive Order)
- Fact Sheet: President Donald J. Trump Amends Duties to Address the Flow of Illicit Drugs Across our Northern Border
- ADJUSTING IMPORTS OF COPPER INTO THE UNITED STATES (Presidential Proclamation)
- Fact Sheet: President Donald J. Trump Further Modifies the Reciprocal Tariff Rates
- Fact Sheet: President Donald J. Trump Addresses Threats to the United States from the Government of Brazil
GOVERNMENT SOURCES (2)
- State of U.S. Tariffs: August 1, 2025 | The Budget Lab at Yale
- Adjusting Imports of Copper Into the United States – Federal Register
Breakthrough Agreement Announced July 27-28, 2025
The United States and European Union reached a comprehensive trade framework agreement on July 27, 2025, following high-level negotiations between President Trump and European Commission President Ursula von der Leyen at Trump’s Turnberry resort in Scotland. The deal establishes a 15% tariff rate on most EU goods entering the U.S., representing a significant reduction from the threatened 30% tariffs that were scheduled to take effect August 1. According to the White House announcement, the agreement includes the EU’s commitment to purchase $750 billion in U.S. energy products and invest an additional $600 billion in American operations, while also securing zero-tariff access for specific U.S. exports to European markets. The framework provides exemptions for aircraft and aircraft components, certain chemicals, some generic pharmaceuticals, semiconductor manufacturing equipment, select agricultural products, natural resources, and essential raw materials.
Impact for NPA Members
The 15% EU tariff rate aligns with recent agreements reached with Japan (announced July 22) and mirrors the administration’s emerging framework for major trading partners, as outlined in the White House fact sheet on the U.S.-Japan Strategic Trade and Investment Agreement. NPA members should note that this rate applies broadly across key supply chain categories for natural products companies. With the August 1st deadline now firm and no additional extensions planned, members are advised to finalize any necessary sourcing adjustments and review supply contracts that may be affected by these new duty structures.
- https://www.reuters.com/business/us-eu-avert-trade-war-with-15-tariff-deal-2025-07-27/
- https://www.cbsnews.com/news/trump-european-union-trade-deal-reached-scotland/
- https://www.tradecomplianceresourcehub.com/2025/07/25/trump-2-0-tariff-tracker/
- https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-president-donald-j-trump-continues-enforcement-of-reciprocal-tariffs-and-announces-new-tariff-rates/
- https://www.cbsnews.com/news/trump-scotland-uk-starmer-eu-trade-deal/
- https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-president-donald-j-trump-secures-unprecedented-u-s-japan-strategic-trade-and-investment-agreement/
Tariff Update: July 23, 2025
On July 22 the Trump administration announced a new US-Japan trade deal, they state that this will establish a 15% tariff rate on Japanese imports, down from the threatened 25%, while securing Japan’s commitment to invest $550 billion in U.S. projects with 90% of profits returning to America. The administration also has a new U.S.-Indonesia agreement that imposes a 19% tariff on Indonesian goods while Indonesia eliminates approximately 99% of tariff barriers on U.S. industrial and agricultural products. According to the official White House fact sheet, Indonesia will also remove critical non-tariff barriers including local content requirements, pre-shipment inspections, and import licensing regimes that have historically impeded U.S. exporters. NPA members should evaluate how these differentiated tariff structures could affect them, and keep in mind that other major partners like the EU and Mexico still face potential 30% rates after August 1, and this may create sourcing advantages and require strategic supply chain adjustments.
- https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-the-united-states-and-indonesia-reach-historic-trade-deal/
- https://www.whitehouse.gov/briefings-statements/2025/07/joint-statement-on-framework-for-united-states-indonesia-agreement-on-reciprocal-trade/
- https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-president-donald-j-trump-continues-enforcement-of-reciprocal-tariffs-and-announces-new-tariff-rates/
Update: July 17, 2025
On Monday, July 14, 2025, President Trump stated that if Russia fails to reach a negotiated settlement with Ukraine within 50 days, his administration will impose a 100% tariff rate on Russian imports. He also pledged to enact “secondary tariffs” targeting countries that continue to conduct business with Moscow. For NPA members, these developments may result in increased input costs, supply chain difficulties, and volatility in key markets, especially within the markets of those countries subject to possible “secondary tariffs”. Check out this ABC News article for more details: Trump defends giving Putin ’50 days’ to make peace with Ukraine – ABC News
Implications for the Natural Products Association (NPA) and Its Members
The dynamic nature of these trade policies necessitates proactive measures from the NPA and its members in the supplement and natural products industry. To navigate the challenges posed by fluctuating tariffs, consider the following strategies:
- Stay Informed: Regularly monitor official communications from relevant government agencies, such as the U.S. Trade Representative (USTR) and the Department of Commerce (DOC), to stay updated on policy changes that may impact your supply chains and operations.
- Engage in Advocacy: Collaborate with industry associations and participate in advocacy efforts to communicate the industry’s concerns and perspectives to policymakers. Engaging in dialogue can help shape trade policies that consider the unique needs of the supplement sector.
- Consult Trade Experts: Seek guidance from trade compliance professionals to navigate the complexities of tariff regulations and to develop strategies that minimize financial and operational impacts.
By adopting these measures, NPA members can better manage the uncertainties associated with the current tariff landscape and maintain compliance with evolving trade policies.
Helpful Links:
- Fact Sheet: President Donald J. Trump Continues Enforcement of Reciprocal Tariffs and Announces New Tariff Rates
- Economic Impact of Annex II Tariff Exemptions
- Tariffs Work — and President Trump’s First Term Proves It
- ITA (International Trade Administration)
- USTR ( Office of the United States Trade Representative) Tariff Schedules
- FTA Tariff Tool
- Trump WH Reciprocal Trade Plan
