Many herbalists are justifiably concerned about the impact of Trump’s tariffs on the price of Chinese herbs. The tariffs that have been announced in recent weeks are unprecedented, and each day seems to bring new levels of volatility and uncertainty. Since tariffs are an added tax that is paid by American importers and consumers, practitioners will ultimately have to adapt to a new reality of higher prices if this unfortunate trade war continues.
At present, there is no need to panic, as Legendary and many other companies stocked up as much as possible prior to the election. However, prices will never be lower than they are right now; future batches will surely have higher prices due to the new tariffs and increasing raw material costs. Suppliers will likely need to utilize dynamic pricing that fluctuates based on their costs for each batch, and some herbs may be prone to shortages since importers will hesitate to bring in large new batches while tariff rates are sky high and unpredictable.
In general, practitioners should try to stock up as much as possible before prices go up, yet it is important to remain calm and keep inventory levels that are realistic and manageable.
The Background
It can be difficult to keep track of the rapid pace of Trump’s tariff escalations. In Trump’s first term, a 15% tariff was added to most Chinese herbs, and some items such as ginseng were hit by 25% tariffs. Much to our disappointment, the Biden administration retained Trump’s tariffs and inflation continued. During that era, the 15% added tariff on Chinese herbs was eventually reduced to 7.5%; the relevant HTS codes already had a 6.4% base tariff, so for much of the past eight years, herbs from China essentially had a tariff rate of 13.9% (6.4% + 7.5%).
On February 1st, 2025, Trump added an additional 10% tariff on products from China, and then he added another 10% on March 4th. This additional 20% tariff would be added on top of the previous tariff of 13.9%, resulting in a staggering 33.9% tariff. In March, I started writing an article to share with practitioners, but things just kept getting crazier. On April 9th, Trump became completely unhinged and raised the tariff rates on China to 145% (the 145% is added on top of the existing base tariffs, so the true rate for Chinese herbs and acupuncture needles is even higher).
A tariff rate of 145% on Chinese goods is so shockingly high that it could destabilize the global economy. (Ironically, opposition to high taxes imposed by the British on tea was a key component of the American Revolution.) Perhaps wiser economic policies will eventually prevail, and the tariff rates will come down. At present, the world is holding its breath and watching in disbelief.
Wider considerations
Chinese herb prices are affected by many factors beyond tariffs, and several individual herbs have become significantly more expensive in recent years. Herbs such as huang lian, mu dan pi, and suan zao ren (along with many insect and animal products) have seen their raw material prices soar, so future batches of certain herbs will become more expensive regardless of tariffs.
At Legendary, we are fortunate to have a solid supply of herbs and we are not increasing our prices yet. However, we operate with small margins, and the cost of herbs, shipping, and other miscellaneous costs continue to rise. New batches will fluctuate in price due to the tariffs, and we will likely need to adjust the prices dynamically in the future. It is a good time to stock up while the old prices last, and I will put a few expensive items such as chuan bei mu, wu gong, and quan xie on sale so that our customers can stock up.
Thank you very much for your support! At times of such unprecedented chaos, we are grateful to have such a solid community of practitioners and friends. Legendary will continue to have the best quality and the best prices in the industry. We will get through this madness together.
Sincerely,
Eric Brand
(P.S. The photo below reminds me of nicer times, picking forest-grown ginseng with Mr. Ding at his secret patch on Chang Bai Mountain. The tree behind us is engraved with markings left by the Emperor’s ginseng collectors in the Qing dynasty.)
