Higher Consumer Health Price Tags Ahead As Chinese Import Tariff Increases
This article was originally published in The Rose Sheet
Additional tariffs on Chinese imports of ingredients needed for dietary supplements in addition to active ingredients and excipients used in OTC drugs will increase manufacturers' costs even if they arrange to receive ingredients from firms in the US of other countries. The American Herbal Products Association told USTR that firms impacted by the additional tariff "will be faced with the need to either increase prices and thus risk sales losses, absorb additional costs by reducing profit margins, or discontinue products; each of these options risks economic harm to these companies and job losses to their employees."
You may also be interested in...
Third-quarter organic sales jumped 4.7%, ahead of analyst expectations, on volume growth and product mix and pricing. However, due to commodity pressures from trade tariffs, it will raise prices across a third of its portfolio, starting in the current quarter.
NPA sounds alarm on Trump administration tariffs on $200bn in Chinese goods scheduled for October. In letter US Trade Representative, NPA President and CEO Daniel Fabricant asks the agency to exempt 57 items from the Harmonized Tariff Schedule that would impact hundreds of dietary ingredients.
Don’t do anything rash to avoid US tariffs on drug products, ingredients and supplies from China, consultants advise. It would be better to just wait to see if the tariff war blows over.