Tariffs are an unavoidable reality in today’s global economy—especially in the U.S. supplement industry, where a significant share of ingredients, raw materials, and packaging come from overseas suppliers. The situation has become particularly dire in recent years: Chinese botanical extracts now face combined tariffs up to 145%, while even essential vitamin C carries an extra 20% import tax. For supplement brand owners, the impact of these skyrocketing duties can be profound: unexpected price increases, product delays, and profit margins that seem to shrink by the day.
As a U.S.-based supplement manufacturer, we navigate these complexities daily so our brand partners don’t have to. But minimizing the effects of tariffs isn’t just about what we do behind the scenes—there are practical steps your brand can take to stay agile, informed, and resilient.
Understand the Risk Landscape
The supplement supply chain is heavily dependent on global sourcing. According to industry research, up to 75% of dietary supplement ingredients are sourced from China, including:
- Vitamin C and B-complex vitamins
- Amino acids like taurine and L-carnitine
- Botanical extracts (e.g. ginseng, astragalus, licorice root)
- Capsules and packaging components
Tariffs on these imports can range from 10% to over 100%, depending on classification and trade policy updates. These duties are paid by manufacturers like us, but the costs inevitably ripple downstream.
For supplement brands, the effect may not be visible at first, but over time, tariff costs can lead to:
- Price increases on finished goods
- Product reformulations to avoid high-tariff ingredients
- Lead time variability and backorders due to sourcing delays
How Brands Can Help Minimize Tariff Exposure
While your manufacturing partner shoulders the burden of tariff classification and import duty management, you still play a critical role in reducing your brand’s exposure to supply chain volatility. Here’s how:
1. Work With a Vertically Integrated Manufacturer
When choosing or evaluating a manufacturing partner, look for vertical integration. A vertically integrated contract manufacturer typically has:
- Direct relationships with vetted global suppliers
- In-house capabilities like blending, encapsulation, bottling, and labeling
- Control over purchasing, quality testing, and inventory
This level of integration enables more responsive decision-making. For example, when Section 301 tariffs suddenly increased by 10% in early 2025, one of our brand partners faced a potential 30% price hike on their bestselling immune support formula containing Chinese-sourced astragalus. Within 48 hours, our sourcing team identified and qualified an alternative supplier from India, confirmed it met the existing product specifications, and adjusted the manufacturing schedule—all without disrupting their product availability or requiring a price increase to consumers. That kind of agility is only possible with a vertically integrated supply chain.
2. Maintain Open Communication About Ingredient Sourcing
Engage in proactive discussions with your manufacturer about:
- What ingredients are high-risk due to tariffs or shortages
- Whether alternate sources exist (e.g. turmeric from India instead of China)
- How lead times or pricing may be affected
Being informed allows your brand to make strategic decisions before you’re impacted by pricing shifts or availability issues. You can even choose to stock up or change your reorder schedule in advance.
3. Analyze Customer Demand and Stock Strategically
As a brand owner, you have valuable insight into your customer buying patterns, which can help you plan ahead and avoid disruption:
- Identify your best sellers and ensure safety stock is in place for ingredients that are volatile or tariff-exposed
- Work with your manufacturer to forecast demand for seasonal spikes or promotional periods
- Plan ahead for longer lead times when international shipping becomes unpredictable
Brands that maintain just-in-time inventory strategies are at higher risk when ingredient delays or price hikes occur. A smarter approach is to create a buffer inventory for high-volume SKUs or products with tariff-sensitive ingredients.
4. Stay Informed About Trade Policy Trends
While we actively monitor trade regulations and tariff shifts, it’s important for brands to stay aware of broader developments. Even if you’re not directly managing import logistics, tariff policy can impact:
- Ingredient costs
- Lead times
- The need for reformulation
Staying informed allows you to:
- Respond quickly when your manufacturer flags potential changes
- Make better pricing decisions for your retail or wholesale channels
- Communicate transparently with your customers about delays or product changes
Subscribe to industry publications (e.g. NutraIngredients-USA, Natural Products Insider) or ask your manufacturer to include you in relevant policy update alerts.
5. Be Open to Reformulations and Alternatives
In some cases, continuing with a specific ingredient may be cost-prohibitive. Instead of passing those costs on to consumers, you may explore:
- Reformulating with a similar ingredient from a different country of origin
- Removing or replacing a non-essential active ingredient
- Updating product lines to align with current supply realities
A flexible, brand-forward approach to formulation can protect your pricing and product availability while maintaining customer trust.
Final Thought: Agility Is Your Competitive Advantage
The supplement industry isn’t just navigating tariffs—it’s navigating global disruption. Brands that are agile, informed, and partnered with strategic manufacturers are best positioned to weather the storm.
At Mineralife Nutraceuticals, we make it our mission to insulate our partners from complexity while delivering consistent quality and communication. But the most successful outcomes happen when brands and manufacturers work together to anticipate risk and act decisively.
By staying close to your supply chain, analyzing your inventory patterns, and building flexibility into your formulation and forecasting, you can not only minimize the impact of tariffs—you can turn it into a competitive edge.
Want to protect your brand from tariff volatility? Stay tuned for our upcoming downloadable checklist: “5 Ways to Tariff-Proof Your Supplement Brand.” It will be packed with actionable tips you can implement immediately to reduce disruption. If you’d like a personalized discussion now, [schedule a complimentary Supply Chain Vulnerability Assessment] with our team to identify where tariffs might be impacting your margins and discover immediate opportunities to safeguard your profitability.