In the ever-evolving landscape of global trade, 2025 has brought significant changes with the implementation of new US tariffs under President Donald Trump's administration. These reciprocal tariffs, aimed at addressing trade imbalances and boosting domestic production, have introduced a 10% baseline tariff on nearly all imports, with higher rates—up to 25% or more—on goods from key trading partners like China, Canada, Mexico, and the European Union. This shift poses particular challenges for the organic industry, where many essential ingredients and products are sourced internationally due to limited domestic alternatives.

As organic companies in the US grapple with rising costs, trade groups are actively advocating for exemptions, especially for health-focused items. Meanwhile, European suppliers exporting organic goods to the US face additional hurdles, with tariffs potentially reaching 20% on EU-origin products as of April 2025, leading to higher prices and reduced competitiveness in the American market. This article explores the current tariff environment, industry efforts for relief, real-world case studies, and practical strategies to help organic businesses—both in the US and Europe—navigate these uncertainties and protect their bottom lines.

The Current Tariff Landscape in 2025

The Trump administration's tariff plan, unveiled earlier this year, includes sweeping measures such as a 10% general tariff on imports, with escalations for specific countries. Initially set to take effect in February, deadlines have shifted, with some rates increasing to 35% on Canadian goods by August 1, 2025. For the organic sector, this volatility means potential price hikes on imported cocoa, coffee, spices, vitamins, and other staples that lack sufficient US-based sourcing options.

Trade policies remain fluid, with ongoing negotiations influencing outcomes. For instance, while the US-Mexico-Canada Agreement (USMCA) currently exempts certain goods from Canada and Mexico, its 2026 review could reintroduce risks. European organic exporters are particularly affected, as the 20% tariff on EU goods could lead to a projected drop in export volumes, impacting sectors like agriculture and processed foods. Retaliatory measures from the EU might further complicate matters, potentially reducing demand for US organic exports to Europe.

The administration has published lists of exemptions, including some pharmaceutical ingredients, vitamins, and minerals under Annex II in April 2025. However, these are under review and could shift to Section 232 tariffs for national security reasons, which are harder to overturn and often start at 25%. The focus on health and wellness through initiatives like Make America Healthy Again (MAHA), led by HHS Secretary Robert F. Kennedy Jr., offers hope that organic products might receive favorable treatment.

Industry Advocacy and Push for Exemptions

Trade associations are at the forefront of efforts to secure relief. As of late June 2025, no specific exemptions have been granted for organic products, according to Tom Chapman, co-CEO of the Organic Trade Association (OTA). "The likelihood of exemptions for food and agricultural products remains low," Chapman notes, urging companies to educate Congress on business impacts and collaborate through associations for collective advocacy.

Products like cocoa, coffee, and spices—often processed further in the US—may be stronger candidates for future exemptions. OTA emphasizes that while individual paths under the International Emergency Economic Powers Act (IEEPA) are limited, pressure via Congress and trade groups is key.

The Natural Products Association (NPA) is also active. Jim Emme, CEO of NOW Health Group and NPA chairman, reports ongoing work with the White House and Department of Commerce. An March meeting influenced Annex II exemptions for natural ingredients like vitamins, Coenzyme Q10, and amino acids. "Our work is never done," Emme says, highlighting resubmissions for additional items.

Saumil Maheshvari of Orgenetics, an importer of organic plant-based vitamins from East Africa and India, collaborates closely with OTA, focusing on these regions amid tariff pressures.

Case Studies: How Organic Brands Are Responding

Real-world examples illustrate the tariffs' toll and adaptive measures.

Bright Pharma Caps: Patrik Barr, co-founder, imports NOP-certified organic pullulan capsules from China—the world's first of their kind. Initially planning to stockpile in Canada to avoid tariffs, the company faced storage challenges and opted for price increases instead. Barr has lobbied Congress for exemptions, arguing the unique product's role in supporting US jobs and 100% organic supplements. "If we raise prices due to tariffs, many could lose jobs," he told lawmakers, though responses are pending.

Nuherbs: CEO Wilson Lau imports organic herbs from China, where alternatives are scarce due to infrastructure and regional attributes like terroir. Shifting suppliers is costly and risky for small firms. Lau advises reviewing product classifications for accurate, potentially lower tariffs—e.g., distinguishing "tea" from "tea extract"—but stresses legality. "Look at the total cost of ownership," he cautions.

These cases underscore the limited options for many organic importers, especially those reliant on China, which faces higher tariffs and holds near-monopolies on certain supplements.

Tariff Mitigation Strategies for Organic Companies

To safeguard operations, Tom Chapman of OTA offers these actionable tips:

• Monitor Negotiations: Source from countries in active US talks and encourage suppliers to advocate with their governments.
• Diversify Sourcing: Shift to lower-tariff nations where feasible, despite the 10% baseline.
• Leverage USMCA: Use exemptions from Canada and Mexico, mindful of the 2026 review.
• Onshore Production: Relocate manufacturing or processing to the US to cut exposure.
• Share Costs: Negotiate with suppliers to distribute tariff burdens.
• Advocate Actively: Outreach to policymakers on disruptions to push for fair trade agreements.

Emme adds the value of legal counsel for interpreting complex tariff schedules and vendor negotiations. For European firms, exploring US-EU trade deals or diversifying markets could mitigate impacts, as tariffs threaten a 0.4% GDP hit in countries like Germany.

Looking Ahead: Concerns and Opportunities

Industry leaders like Loren Israelsen of the United Natural Products Alliance express worry that Annex II exemptions may lapse into harsher Section 232 tariffs, potentially exceeding 25%. "We're in a period of high uncertainty," Israelsen says, noting China's leverage in critical products.

Yet, the MAHA movement could bolster organic access, encouraging a shift from harmful ingredients. For US and European stakeholders, resolving US-China and US-EU negotiations is crucial to stabilizing supply chains.

As tariffs reshape global trade in 2025, organic companies must stay proactive. By diversifying, advocating, and adapting, businesses can turn challenges into opportunities for resilience and growth. Stay tuned to our news section for updates on trade developments affecting the organic sector. If you're an organic importer or exporter, share your experiences in the comments below—how are tariffs impacting your operations?