India is a rich source of several important nutraceuticals for the American market, many of which cannot be sourced elsewhere. Ingredients like ashwagandha, shilajit and boswellia are exclusive to India, while holy basil and moringa are primarily sourced from the country. That’s why the Trump Administration’s new tariffs on Indian nutraceuticals are crippling the natural products industry in the United States.

A January 2026 Whalesbook report notes that import tariffs on Indian nutraceutical ingredients are reaching up to 50 percent on certain ingredients, which is resulting in cost increases to the end consumer of 35 to 50 percent. Given the nutraceutical industry’s thin margins, this tariff scheme poses an existential threat to smaller brands that source ingredients from India. Complicating this issue is the fact that the U.S. climate lacks the agricultural conditions necessary to grow many of these nutraceuticals; as a result, imports from India are a necessity for brands looking to sell these ingredients.

Two solutions to these tariffs are currently underway. India’s Ministry of Commerce is negotiating with the United States to expand Annex III exemptions to include non-substitutable ingredients like lutein and zeaxanthin. Meanwhile, OmniActive Health Technologies has proposed that the United States reclassify carotenoid preparations for human consumption under Chapter 32, which would classify it as a colorant.

To read the full report, visit www.whalesbook.com/news/English/healthcarebiotech/US-Tariffs-Crimp-Indian-Nutraceutical-Exports/697639c6bb02ae2360250a35.

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