Tariffs

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: 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.

  1. https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-the-united-states-and-indonesia-reach-historic-trade-deal/
  2. https://www.whitehouse.gov/briefings-statements/2025/07/joint-statement-on-framework-for-united-states-indonesia-agreement-on-reciprocal-trade/
  3. 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

Update: July 8, 2025 – New Executive Order on Reciprocal Tariffs

Overview

On July 7, 2025, President Donald J. Trump signed an Executive Order extending the expiration of certain tariff rates from July 9 to August 1, 2025. This action is part of the administration’s ongoing effort to enforce reciprocal tariffs and address the persistent U.S. trade deficit. Letters were sent to numerous trading partners worldwide, notifying them of new reciprocal tariff rates that will take effect on August 1, 2025.

Key Points from the Executive Order

  • Tariff Extension: Tariff rates that were set to expire on July 9 will now expire on August 1, 2025.
  • New Reciprocal Tariff Rates: Starting August 1, many countries will face revised tariff rates on exports to the United States. These rates are designed to promote fairness and reciprocity in trade relationships.
  • Negotiation Window: The extension provides additional time for trade negotiations. Since the last tariff adjustment 90 days ago, several countries have agreed or offered to lower their own tariffs and reduce non-tariff barriers.
  • Ongoing Trade Deficit: Despite some progress, the U.S. trade deficit remains historically high, prompting continued action by the administration.

Countries and New Tariff Rates (Effective August 1, 2025)

Tariffs image

Note: Additional countries may receive tariff notifications in the coming weeks as the administration continues its review and negotiations.

What’s Next?

  • The White House may send additional letters to other trading partners in the coming days.
  • The NPA will provide further updates as new information becomes available and as additional countries are notified of revised tariff rates.

This update is based on official White House communications and recent news reports as of July 8, 2025.

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:

  1. 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.
  2. 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.
  3. 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.

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