On July 2, the Natural Products Association (NPA) released a comprehensive economic analysis demonstrating that the Annex II tariff exemptions granted under the 2025 reciprocal tariff system generate between $218-$247 million in direct cost savings for the dietary supplement industry over a span of 69 days.
The study highlights the critical role these exemptions play in stabilizing supply chains, preserving growth and supporting American consumers’ access to essential health products, NPA said.
The Annex II exemptions were implemented by President Donald Trump in April 2025. Various dietary supplement ingredients were exempted from a baseline 10 percent ad valorem tariff, recognizing their non-pharmaceutical status, high import dependency and significant consumer impact. Ingredients such as CoQ10, creatine and L-theanine were protected, preventing supply chain shortages and price surges.
The study findings showed $5.97 million monthly savings on CoQ10 alone, stabilizing retail prices and ensuring affordability for consumers relying on cardiac and/or wellness formulations.
The exemptions created an 18- to 24-month window for industry leaders to invest in domestic production, diversify supply sources and pursue long-term legislative reforms. The study used customs data, price elasticity models and industry surveys to quantify savings and forecast future scenarios, NPA said.
“We are proud that our sustained advocacy and strategic engagement with the administration have delivered tangible economic relief and safeguarded consumer access to natural health products,” said Daniel Fabricant, PhD, president and CEO of NPA. “These exemptions not only provide immediate cost savings but also offer a critical opportunity to strengthen domestic manufacturing and modernize trade policies for the dietary supplement industry.”
For more information, visit www.npanational.org.
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