The dietary supplement industry continues to grapple with the pervasive impact of tariffs, a topic that first gained significant traction at SupplySide Connect New Jersey in 2025 and remains a dominant concern well over a year later. This ongoing trade policy challenge, intertwined with escalating geopolitical tensions, is fundamentally altering global ingredient supply chains, influencing innovation, and demanding persistent advocacy from industry stakeholders. Graham Rigby, president and CEO of the American Herbal Products Association (AHPA), recently articulated these concerns in an interview with SupplySide Supplement Journal, shedding light on the intricate web of factors affecting botanical suppliers and the broader supplement market.
Geopolitical Volatility and Its Ripple Effects on Ingredient Supply
Recent conflicts, particularly those impacting the Strait of Hormuz, have sent seismic waves through global trade, extending far beyond immediate transportation costs. While diplomatic efforts are underway, the immediate aftermath of such disruptions portends short-term supply chain instability for a multitude of industries, including the vital sector of dietary supplements. Rigby highlighted a critical vulnerability: regions such as India, China, and Southeast Asia, which are primary sources for a vast array of botanicals, depend significantly on fuel and fertilizer imports from the Middle East. Consequently, any supply constraints originating from this region will disproportionately affect the cultivation and availability of these essential ingredients.
"We would expect some supply disruptions there in addition to what we’ll have in our own market," Rigby stated, underscoring the interconnectedness of global resource flows. He further emphasized that e-commerce, a rapidly expanding channel for trade, is also poised to experience significant repercussions from these disruptions, as the movement of goods becomes more unpredictable and costly.
The economic fallout from tariffs is not merely a matter of increased import costs; it actively curtails the industry’s capacity for innovation. As companies face the daunting prospect of absorbing higher expenses, research and development (R&D) initiatives are often the first to be scaled back. This strategic retrenchment in R&D can have long-term implications, potentially slowing the discovery and development of novel ingredients and formulations that could benefit consumer health and well-being.
Beyond broad economic impacts, specific regional botanicals are facing unique threats. Saffron, for instance, a highly prized spice and medicinal ingredient, is intrinsically linked to regions like Iran, which Rigby identified as a significant hub for botanical research. The ongoing geopolitical instability and the prioritization of safety and survival in conflict zones raise serious concerns about the continuity of scientific inquiry. "As it relates to Iran in particular, that is a source of a lot of botanical research," Rigby noted, referencing the scientific output from institutions like the University of Tehran. He expressed apprehension about the long-term implications for these research programs, acknowledging that in times of conflict, botanical research inevitably takes a backseat to more immediate concerns.
The Evolving Landscape of Tariff Exemptions for Botanical Ingredients
A significant development in the ongoing tariff saga was the initial exclusion of botanical products and herbs from early exemption processes, while vitamins and minerals were more readily afforded relief. This disparity presented a considerable challenge for the botanical sector, necessitating concerted efforts by industry associations to advocate for their members.
The AHPA, recognizing the critical need for a unified voice, proactively partnered with other influential trade groups, including the American Spice Trade Association and the National Coffee Association. The collective objective was to identify and advocate for common ground concerning natural resources and herbs that are not domestically cultivated in sufficient quantities to meet market demand. This collaborative approach proved instrumental.
In November 2025, an executive order was issued that provided a measure of relief, exempting 63 tariff codes and 107 specific items. This was a hard-won victory, demonstrating the power of coordinated industry advocacy. However, the complexities of tariff classifications and the nuanced nature of botanical derivatives mean that the work is far from over. Rigby pointed out that while raw ingredients like turmeric and fenugreek might be exempt, their processed extracts often fall under different tariff codes, leading to continued import cost challenges.
"I think one of the things that impacts botanical products is a lot of our herbs are aggregated against one code," Rigby explained, highlighting the inherent difficulty in navigating a tariff system that often lumps diverse ingredients together. He offered the example of green tea extract, which, due to its unique tariff code, was successfully exempted. However, securing exemptions for other, less distinctly classified ingredients remains a more intricate and protracted process.
Adding another layer of complexity to the tariff landscape was the Supreme Court’s February decision to overturn the International Emergency Economic Powers Act (IEEPA). This ruling has significant implications for the executive branch’s ability to impose tariffs unilaterally, potentially creating further uncertainty and requiring a re-evaluation of trade policy mechanisms. The interplay between these tariffs and the legal framework governing their imposition adds a dynamic and evolving dimension to the challenges facing the supplement industry.
Tariffs: A Persistent Reality for the Foreseeable Future
The consensus among industry leaders is that tariffs are not a temporary measure but a fixture of the trade policy landscape for the foreseeable future. "There’s no question that tariffs will be here for months, if not years," Rigby stated with conviction. He identified tariffs as a "major plank" of the Trump administration’s trade policy, underscoring their strategic importance and likely longevity.
In response to this enduring reality, the AHPA is committed to ongoing engagement with its membership and allied organizations. The association’s primary focus remains on educating its members about the evolving impacts of changing tariffs and providing them with the most accurate and actionable insights. Senior editor Hank Schultz has previously reported on AHPA’s midyear webinar updates regarding tariffs, underscoring the association’s proactive approach to disseminating crucial information.
"Education is paramount," Rigby reiterated, emphasizing AHPA’s continued dedication to industry advocacy. "We’ll obviously be working with folks, keeping an eye on it and providing the best insight and advice we can." This commitment to knowledge sharing and proactive guidance is essential for navigating the turbulent waters of international trade and ensuring the continued health and growth of the dietary supplement industry. The intricate interplay of geopolitics, trade policy, and the specific needs of the botanical ingredient supply chain presents a formidable challenge, one that demands sustained vigilance, strategic adaptation, and robust industry collaboration. The path forward requires a deep understanding of these evolving dynamics and a commitment to finding innovative solutions that safeguard both the integrity of the supply chain and the accessibility of vital health-promoting ingredients for consumers worldwide.
