April 2025 Supplement Tariff Summary

On April 2, 2025, the U.S. government enacted two new tariff structures that directly affect dietary supplement imports:

  • Universal Tariffs – 10% duty applied broadly, effective April 5, 2025
  • Reciprocal Tariffs – Country-specific rates of 11–50%, effective April 9, 2025

These tariffs are additive and may stack on top of existing duties, such as the 25% Section 301 tariffs on Chinese goods. In some cases, total duties on affected ingredients now exceed 70%, with immediate implications for ingredient sourcing, cost of goods sold (COGS), and pricing.

 

Tariff Overview

Tariff Type Effective Date Scope Rate
Universal Tariff April 5, 2025 Imports from non-exempt countries 10%
Reciprocal Tariff April 9, 2025 57 countries with deemed unfair trade practices 11–50%

For example, imports from China may now be subject to a combined tariff rate of 79%, including the March 2025 20% tariff and 34% reciprocal tariff on top of the longstanding Section 301 rate​.

 

Exempt Ingredients

The following essential dietary supplement ingredients are not subject to the new April tariffs, regardless of country of origin:

  • Vitamins A, B1–B12, C, E, Folic Acid, Niacin, Niacinamide
  • Coenzyme Q10
  • Choline
  • Amino Acids (e.g., L-Lysine, L-Glutamine)
  • Minerals (e.g., Calcium, Iron, Magnesium, Zinc, Selenium)
  • Fatty Acids (including fish oils, excluding powders/capsules/liquids)


Commonly Impacted Ingredients

Ingredient Country of Origin Tariff Rate Notes
Ashwagandha Extract India 27% Reciprocal Tariff
Turmeric (Curcumin) India 27% Reciprocal Tariff
Ginkgo Biloba Extract China 34% Stacked with Section 301
Green Tea Extract China 34% Stacked with Section 301
Elderberry European Union 20% Reciprocal Tariff
Caffeine (Synthetic) China / India 34% / 27% Depends on origin
Botanical Powders Peru, India, China 10–34% Varies by country

 

Impacts for Brands

  1. Increased COGS
    Higher import costs will affect margins, especially for brands relying on botanical extracts and specialty ingredients.
  2. Supply Chain Disruption
    Customs classification issues and tariff stacking may cause shipping delays and ingredient shortages.
  3. Strategic Sourcing Shifts
    Brands may benefit from transitioning to suppliers in countries such as Mexico or Brazil, which currently offer more favorable tariff status under agreements like USMCA.
  4. Reformulation Needs
    Where ingredient substitution is viable, reformulation will require new testing, label updates, and regulatory compliance.
  5. Pricing Pressure
    Depending on positioning and margin structure, brands may need to evaluate pricing changes or adjust promotional strategy.

 

Key Definitions

Term Definition
HTSUS Harmonized Tariff Schedule of the U.S., used for import classification
Reciprocal Tariff Country-specific tariff (11–50%) for unfair trade practice countries
Universal Tariff 10% flat rate on countries not listed in reciprocal annex
Section 301 25% tariff on Chinese goods implemented in 2018
USMCA U.S.-Mexico-Canada Agreement, exempting qualifying imports from tariffs
IEEPA Emergency powers that may trigger additional tariffs, including proposed ones on Canada and Mexico

 

Final Notes

To help minimize disruption and protect your supply chain, WB Blends is taking the following steps:

  • Sourcing from lower-tariff countries where feasible.
  • Auditing HTS codes to ensure proper classification and reduce unnecessary duties.
  • Partnering with brands to stock critical items to mitigate pricing impact.

We encourage our partners to:

  • Evaluate reformulation options where appropriate.
  • Align with sales, operations, and marketing on pricing strategies.
  • Stay informed as tariff policy continues to evolve.

These tariffs present challenges—but also opportunities for strategic supply chain management.

Tagged with:

COGS, Dietary supplements, Import costs, Reformulation, Supply chain, Tariff changes, US trade policy

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