Image: Pexels - Markus Winkler
Who Really Pays the Tariffs?
There’s a persistent misconception that tariffs are paid by the foreign country. In reality, it is U.S. importers like Kamwo who pay these tariffs upfront. That cost then flows through the supply chain—impacting businesses, practitioners, and ultimately, patients.
These tariffs hurt the U.S. far more than China—they penalize American consumers and small businesses like Kamwo, while China’s domestic market remains largely unaffected. Chinese manufacturers continue operations with minimal disruption, as the U.S. represents only a small portion of their global market and an even smaller slice of their enormous domestic demand.
Why Tariffs Don’t Make Strategic Sense in Our Industry
Tariffs are sometimes used to stimulate domestic industry. But this strategy does not apply to TCM.
The U.S. cannot reproduce the growing conditions, scale, or expertise required to cultivate and process Chinese herbs at a clinical grade.
There is no domestic herbal supply chain in place. No extraction labs with equivalent standards. No ability to replace these imports with American-grown substitutes. These tariffs don’t protect an emerging industry—they raise prices on one that cannot exist without China.
The “Made in America” Illusion—Especially in Our Profession
It’s also time to clear up another misunderstanding: “Made in the USA” does not mean entirely sourced in the USA. Many products in our field, including those labeled “Made in the USA” or “Made in Taiwan,” still rely on raw materials grown and processed in China.
These labels often reflect where the final assembly or packaging took place—not the true origin of the materials. This isn’t deception—it’s the reality of a global supply chain. Disrupting Chinese exports affects almost everything in our industry, regardless of what the label says. That’s why this tariff regime is so economically damaging—it inflates prices without offering real alternatives.
Total Paralysis in the Import Sector
At 145%, the tariff is now so cost-prohibitive that virtually all importers have halted new shipments. Everyone is waiting to see how long this will last. This has led to a freeze in the supply pipeline and created a surge in demand for inventory already on U.S. soil.
The result? A rush on existing supplies, followed by price increases—not 145% higher, but higher nonetheless. Hoarding has begun. Panic is setting in. And most of the industry is sitting in paralysis, waiting.
Kamwo’s Response: Stability, Not Speculation
At Kamwo, we saw this coming and took steps to secure our inventory well in advance.
We have enough stock. Our ability to fill prescriptions is uninterrupted through at least the third quarter of this year, and we remain operational without relying on emergency shipments.
We are keeping price increases minimal. While we must make modest adjustments to account for the increased cost of doing business, we are committed to avoiding panic pricing or opportunistic markups.
We remain focused on long-term stability. As a trusted supplier for over 50 years, our foremost responsibility is to ensure that we continue to fill herbal prescriptions reliably and without interruption.
To preserve our ability to serve clinics and practitioners, we will be temporarily suspending purchases of bulk herb orders. This strategic move allows us to protect our prescription service capacity and maintain continuity of care.
A Bit of Perspective—and Some Reassurance
There is one small consolation: we are not alone. Every importer across every sector—tech, textiles, consumer goods—is facing the same issue.
This broad-based impact means the government cannot ignore the consequences. The 145% tariff is economically unsustainable for the entire country. As more small businesses buckle under the pressure, as consumer prices rise, and as jobs are lost, something will have to give.
I’ve spoken to many importers in our field. We all agree: this policy is not only unsustainable—it’s economically suicidal for both the U.S. and China. At some point, the consequences will force change. I don’t know if the tariffs will be fully repealed, but I am confident that they will be reduced.
This trade war will end—not because it’s politically expedient, but because it has to.
Until then, Kamwo will stay the course. We are committed to clarity, transparency, and continuity of care—for you and your patients.
Dr. Thomas Leung
Pharm BS., DACM, L.Ac
CEO of Kamwo Herbs