Originally crafted for the Acupuncture Society of New York (ASNY), this article was written to shed light on the critical impact of tariffs on Traditional Chinese Medicine. Given the widespread implications for practitioners and patients alike, we are now sharing it with the broader TCM community to spark awareness and action.
Image: Markus Winkler-Pexels
The ongoing trade policies between the U.S. and China have significantly affected traditional Chinese medicine (TCM) imports, particularly with the 35% tariff imposed on acupuncture needles, herbal products, and other essential supplies. These tariffs do not burden Chinese manufacturers; instead, they are paid by U.S. importers—businesses like Kamwo Meridian Herbs—which means the increased costs inevitably trickle down to American consumers, including practitioners and patients.
Who Really Pays the Tariffs?
One of the biggest misconceptions about tariffs is that they are paid by foreign suppliers. In reality, it is U.S. businesses that bear the direct financial burden. When Kamwo imports acupuncture needles, bulk herbs, granules, and prepared formulas, we must pay an additional 35% on top of the cost of the goods before they can even enter the country. These increased expenses then impact pricing throughout the supply chain, affecting practitioners who rely on these products for their treatments and, ultimately, the patients who receive care.
For practitioners and clinics in the U.S., rising costs make it more expensive to stock essential supplies, increasing operational expenses and creating financial strain. Since TCM treatments are often paid out-of-pocket by patients, higher supply costs could mean higher treatment fees, making care less accessible for some individuals.
The Purpose of Tariffs—And Why It Doesn’t Apply to TCM
Historically, tariffs have been used as a strategic tool to encourage the growth of domestic industries. By making foreign imports more expensive, the idea is to create a financial incentive for domestic businesses to develop local production, ensuring long-term economic independence. This strategy has worked in industries like steel, manufacturing, and technology, where the U.S. has the resources, labor, and infrastructure to support domestic growth.
However, this logic does not apply to the TCM industry. The vast majority of medicinal herbs used in traditional Chinese medicine cannot be easily cultivated in the U.S. due to climate, soil conditions, and agricultural expertise. Additionally, processing these herbs requires highly specialized knowledge and centuries-old techniques that are deeply rooted in China’s herbal tradition. Simply put, the U.S. does not—and realistically cannot—develop a domestic alternative to sourcing TCM herbs from China at the scale or quality required for clinical use.
Tariffs on these products do not stimulate domestic production; they only increase costs for American businesses and healthcare providers without offering any viable alternative. Unlike industries where protectionist policies might create opportunities for local manufacturing, there is no practical path for the U.S. to replace China as the primary source for high-quality TCM herbs and acupuncture supplies.
Understanding the Supply Chain Impact
While tariffs create challenges for U.S. importers and buyers, they have little effect on Chinese manufacturers. The United States represents only a small fraction of China’s massive TCM market, which is primarily driven by domestic consumption and exports to other regions. With such a vast internal market, Chinese producers continue business as usual, while American importers struggle with increased costs.
Some distributors have explored sourcing herbs and acupuncture supplies from other regions, but China remains the preferred supplier due to its established infrastructure, expertise, and historical cultivation of medicinal herbs. Attempts to shift sourcing have often faced challenges related to quality control, standardization, and regulatory compliance.
The Long-Term Outlook on Tariffs
While tariffs may be introduced as a political or economic tool, their long-term effects often lead to unintended consequences. In the case of TCM and acupuncture supplies, these tariffs are purely inflationary. They do not serve to protect or grow an American industry because no such industry exists—or can realistically exist. Instead, they artificially drive up prices, reducing affordability for businesses and consumers alike.
More broadly, the continued use of tariffs as an economic weapon can set off a chain reaction. Retaliatory tariffs from other countries can impact U.S. exports, leading to job losses, reduced economic activity, and business closures. The higher costs that tariffs impose on essential goods will continue to contribute to inflation, disproportionately affecting lower-income consumers who are already struggling with rising costs in healthcare, food, and energy.
At some point, economic realities will force a shift in policy. Once enough businesses are forced to close, enough workers lose jobs, and public dissatisfaction reaches a tipping point, policymakers may be pressured to rethink their approach. Historically, tariff-driven trade wars have rarely resulted in long-term economic gains for any country involved. Eventually, the weight of these economic disruptions will make it clear that protectionist tariffs are a no-win strategy, and a more balanced trade policy will have to take their place.
The Industry’s Response and Future Outlook
Despite these challenges, Kamwo remains committed to ensuring continued access to high-quality herbal products and acupuncture supplies. We have worked diligently to optimize supply chains, negotiate with manufacturers, and explore ways to mitigate costs while maintaining the integrity of our offerings.
For practitioners, staying informed about trade policies and price trends is crucial. Advocacy within the TCM community is also important—policymakers need to understand that these tariffs do not hurt foreign manufacturers but instead place the financial burden on American businesses and consumers.
Kamwo will continue to monitor these developments closely and provide updates as the situation evolves. Our goal remains the same: to support practitioners by ensuring continued access to the best possible herbs and acupuncture products, even in the face of economic challenges.
Dr. Thomas Leung
Kamwo Meridian Herbs