Hank Schultz examined how the Dietary Supplements industry is reacting to President Donald Trump, and insiders are nervous. Donald Trump is well known for making controversial statements that might become policy, but the anti-China tone concerns many who rely on Chinese ingredients.
Trump has nominated Peter Navarro, Ph.D., a Harvard-educated economist as head of the White House office overseeing trade and industrial policy. Navarro is not a fan of the current US-China trade relationship and more than likely will recommend trade restrictions. Many worry that the stigmatization of Chinese-sourced products would negatively affect the Dietary Supplement industry more than it already has.
China is nervous too, according to the CEO of the CoQ10 Association, Scott Steinford. John Zeng, Vice President of the Yunnan Alphy Biotech Co. Ltd. believes that Trump would impose import taxes and tariffs in an effort to force US companies to purchase US-based ingredients. Others have noted that Trump’s brash statements could ruffle many nations’ feathers.
Higher tariffs and taxes would translate into higher costs for stateside consumers and less consistency when it comes to ingredients, something that the Food and Drug Administration (FDA) is trying to overcome with the implementation of the Food Safety Modernization Act (FSMA). Instead of continuing to use China as a major source of ingredients, companies would be forced to look elsewhere.
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