April 9, 2025
Dear valued customer,
Tariffs Impact on Pricing
I hope this message finds you well.
We waited until we had a little more clarity regarding the tariffs before reaching out to you. The 90-day pause on reciprocal tariffs announced Wednesday, and Treasury Secretary Scott Bessent’s comment that country-by-country negotiations will be ‘bespoke’ gives us confidence that negotiations between the Trump Administration and various nations will lead to positive outcomes in most cases. Negotiations with China will potentially be more protracted, but we believe that it is in both countries’ interests to reach a resolution. It just may take more time before we have clarity on that situation.
Given these facts, we have decided to move forward with price increases that focus solely on the 10% baseline tariff applied universally to all countries of origin. Our approach, both from an inventory and pricing point of view, will be as follows:
• Inventory that is in stock and inbound inventory that is not impacted by the 10% baseline tariff will see no change in price.
• We will allocate this inventory based upon established buying patterns to ensure existing customers continue to have access to products they have historically been purchasing (i.e., we won’t allow one customer to clear out all inventory to the detriment of our other customers).
• New lots of products upon which our landed cost will be subjected to the 10% baseline tariffs will see upward price adjustments, but in most cases, these increases will be less than 10%.
Products Imported from China
As you will likely be aware, as of Wednesday morning imports from China will be subjected to 125% ‘reciprocal’ tariffs. We have therefore put a hold on most shipments from China until there is greater clarity. Account managers will be reaching out to those of our customers who buy products for which China is the country of origin to discuss the specific situations with those products and how we might move forward.
Mitigation Steps
We deeply regret having to increase prices, but this has been brought about by factors beyond our control. To mitigate the impact, we have established within NP Nutra a dedicated working group to evaluate the effects of tariffs on each product and country of origin, with the initial focus on China. We are proactively exploring alternative manufacturing options to minimize costs for you, our valued customer, while ensuring uninterrupted supply.
Should you have any questions or concerns, please do not hesitate to let us know.
Kind regards,
Mark Campbell
President & CEO
For more information about NP Nutra® and its range of premium ingredients, visit npnutra.com.
