Market Updates

NPA Analysis Details Cost Savings From Annex II Tariff Exemptions

In the 69 days since the Trump Administration introduced new tariffs, exemptions have prevented an estimated $218-247 million in costs to the supplements industry.

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By: Mike Montemarano

Associate Editor, Nutraceuticals World

Photo: nikomsolftwaer | Adobe Stock

The Natural Products Association (NPA) has published a report estimating how much money the dietary supplements industry did not need to pay as a result of Annex II exemptions from reciprocal tariffs implemented in April.

According to the report, “Economic Impact of Annex II Tariff Exemptions on the Dietary Supplement Industry: A Comprehensive Analysis of Cost Savings from April – June 2025,” exemptions have spared the supplements industry from paying between $218 million and $247 million in tariffs.

The study utilized customs data, price elasticity models, and industry surveys to quantify savings and forecast future scenarios.

The Trump Administration excluded certain vitamins, minerals, amino acids, choline, CoQ10, and other specialty ingredients from a 10% ad valorem tariff, recognizing their non-pharmaceutical status, high import dependency (over 60% of materials are imported), and significant consumer impact.

NPA representatives met with White House officials in the spring of 2025 to stress the importance of the dietary supplement supply chain.

For CoQ10 alone, the industry was exempted from paying what would’ve been $5.97 million per month, stabilizing retail prices and ensuring affordability for consumers relying on cardiac and wellness formulations, according to NPA.

“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, 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.”

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