Following a weekend of negotiations in Geneva, the U.S. and China have agreed to substantially roll back tariffs on each other’s imports. The agreement comes after weeks of both countries imposing increased, retaliatory tariffs on one another’s exports.

A joint statement issued by the White House reports that both sides recognize “the importance of their bilateral economic and trade relationship to both countries and the global economy,” and will move forward “in the spirit of mutual opening, continued communication, cooperation, and mutual respect.”

In the initial agreement, which goes into effect on May 14, each country has agreed to reduce tariffs on the other’s imports of all products across the board by 115 percentage points for 90 days, starting May 14.

Chinese tariffs on American imports will go from 125% to 10%. American tariffs on Chinese imports will be lowered from 145% to 30%.

The two sides also agreed to establish a forum to continue discussions about economic and trade relations, led by He Lifeng, vice premier of the Chinese State Council, and Scott Bessent, treasury secretary, and Jamieson Greer, U.S. trade representative.

NPA: Expect a More Level Playing Field

The Natural Products Association (NPA) stated that the agreement is a “significant step toward fairer global trade, a more level playing field for American manufacturers, and greater market access for U.S.-made dietary supplements and natural products.”

During NPA’s national fly-in day held last week, the importance of strengthening the dietary supplement supply chain was a top issue of discussion in direct meetings between NPA’s board of directors and White House officials, per NPA.

“President Trump’s agreement with China is a game-changer for American businesses, including those in the natural products industry,” said Daniel Fabricant, PhD, president and CEO of the Natural Products Association. “For too long, American producers and exporters have faced steep barriers and retaliatory tariffs that made it harder for our members to compete globally and deliver high-quality products to consumers worldwide. This new deal brings hope, opportunity, and clarity for our sector.”

“Lowering tariffs by 115% on both sides and pausing further escalation is a win for U.S. manufacturers and American consumers,” Fabricant continued. “It reinforces the administration’s commitment to supply chain resilience and promotes domestic investment, principles the NPA has long championed.”

CRN: A Step in the Right Direction

According to Jeff Ventura, vice president of communications for the Council of Responsible Nutrition (CRN), the recent agreement is encouraging, but CRN is hopeful for some greater reassurance.

“Any movement toward rolling back tariffs, particularly those involving China, is a welcome development for many companies in our industry. While it’s encouraging news, it may be premature to call it ‘business as usual’ just yet. Supplement companies have already made significant adjustments to their supply chains in response to the initial tariff rollouts earlier this year, and today’s announcement adds a measurement of optimism that we may be turning a corner. We remain hopeful that this is a step in the right direction toward more stable, predictable trade policy that supports the continued growth and accessibility of nutrition products.”

Even if tariffs on products across the board remain stable between the two countries, the nutraceuticals industry might not yet be out of the woods. It has been made clear by several dietary supplement trade associations that a Section 232 investigation initiated by the Trump Administration to determine if pharmaceutical imports are a threat to national security could subject supplement ingredients that were initially exempted from across-the-board tariffs to a variety of import control measures.

Impact on the Botanicals Sector

Graham Rigby, president and CEO of the American Herbal Products Association (AHPA), noted that the botanicals segment of the supplements industry is in a uniquely challenging position that is currently being overlooked by the administration. Compared to the rest of the supplements industry, herb and botanical specialists are experiencing a disproportionate amount of disruptions to procurement times, and are being forced to reevaluate their supply chains.

“Many ingredients sourced from China and other international sources are difficult or impossible to replace domestically,” he said. “Even a temporary rollback may offer cost relief, but it does not eliminate the barriers that remain for companies that rely on these critical ingredients to produce the dietary supplements that consumers count on for their personal health. The uncertainty fuels confusion. Do importers raise their prices? How about contract manufacturers who convert these imported goods to finished products? The lack of certainty is fueling confusion and frustration among those trying to accurately plan their business.”

While the temporary rollback of tariffs does ease some immediate supply chain pressures, uncertainty remains in the botanicals space, given that no herb or botanical ingredient has been exempted thus far. “For longer-term stability, AHPA would like to see herbal ingredients be exempted from tariffs, especially those for which there is no potential of domestic supply, and we have been actively engaging with policymakers in pursuit of such trade relief for our members and the wider industry,” Rigby said.