New Annex III signals tariff relief for some herbs

• By: AHPA
• On: 09/07/2025 12:20:07
• In: Regulation / Legislation

Late Friday, the Trump administration published an executive order taking a range of actions in relation to its tariff policies. Among other changes, the order creates a new “Annex III”, which contains commodities for which the President may remove reciprocal tariffs in particular finalized trade agreements. Included in this annex are commodities “that cannot be grown, mined, or naturally produced in the United States or grown, mined, or naturally produced in sufficient quantities in the United States to satisfy domestic demand,” Including a number of herbs and substances used in the manufacture of dietary supplements. Included without further limitation are commodities such as:
 

• Cinnamon (0906.11.00, 0906.19.00, 0906.20.00)

• Ginger (0910.11.00, 0910.12.00)

• Green tea (0902.10.10, 0902.10.90, 0902.20.10, 0902.20.90)

• Gum Arabic (1301.20.00)

• Single-cell micro-organisms, dead, excluding yeasts [generally including red yeast rice] (2102.20.60)

• Turmeric (0910.30.00)

• Resinoids [including Boswellia] (3301.30.00)

However, three critical considerations are important when viewing this annex.

First, commodities listed in this annex are not now exempt from tariffs; this annex is solely a representation of commodities that may be subject to a zero percent reciprocal tariff rate under some circumstances and from some countries, dependent upon the final trade agreement language. Any preexisting tariff rates applicable to a given commodity would also still apply.

Second, many commodity codes included in Annex III are subject to scope restrictions. For example, subheading 2106.90.99 of the Harmonized Tariff Schedule (HTS) is a large “catchall” category that includes “herbal teas and herbal infusions comprising mixed herbs”. Unfortunately, the entry under the same subheading in Annex III is limited to “Acai preparations for the manufacture of beverages”. Several major herbal commodities are included as part of commodity headings that are otherwise restricted, including Boswellia (1301.90.91) and psyllium seed husk (1301.90.91).

Third, Annex III also includes a number of vitamin and other commodities in Chapter 29 of the HTS which are currently exempt from reciprocal tariffs because they are also listed in “Annex II” and subject to ongoing investigations which may result in import controls under a separate authority. However, these overlapping Annex III entries are generally subject to a limitation and include “only non-patented articles for use in pharmaceutical applications”.

AHPA is preparing a comparison document identifying herbal commodities included or not included in Annex III, and applicable limitations. This document will be added to the AHPA Tariff Toolkit.

“The inclusion of these commodities in Annex III is a promising acknowledgment from the administration,” said Robert Marriott, AHPA VP of Government & Regulatory Affairs. “We will redouble our efforts to ensure a greater range of unavailable natural resources are included in final trade agreements.”

The executive order also modifies Annex II to add some additional commodity codes not generally of interest to the dietary supplements trade. The updated Annex II will also be included in the AHPA Tariff Toolkit.